According to the announcement on the website, the peer-to-peer Bitcoin platform will be closed before the end of February 2023.
LocalBitcoins has announced that the exchange will be closed for service at the end of February. The long-standing Bitcoin trading service became the first peer-to-peer (P2P) transaction platform for many Bitcoiners. Launched in June 2012, the exchange is one of the oldest entities in Bitcoin, becoming a major P2P player in its day with more than $100 million in weekly trading volume from peer-to-peer transactions.
“Originally LocalBitcoins was established to Bring Bitcoin Everywhere and drive global financial inclusion,” the announcement read. “We have honored that mission for more than 10 years and we are proud of what we have achieved together with all of you, our loyal community.”
The announcement cited “challenges during a very cold crypto-winter” as the reason for the shutdown. The exchange has informed customers that they must withdraw funds from LocalBitcoins, as well as withdraw bitcoins from LocalBitcoins wallets. It notes that customers will have 12 months to complete this process, although they encourage users to do it sooner.
In particular, the shutdown has come as P2P Bitcoin traders and individual sellers have come under heavy scrutiny from US regulatory authorities. While there was no mention of this in the announcement, it can be assumed that this new action has caused the volume to drop on platforms like LocalBitcoins.
Despite these pressures, alternatives such as RoboSats and Bisq still work for Bitcoiners who want to earn bitcoins through P2P transactions.