Topic: Why Localbitcoin take this action ? - page 2. (Read 350 times)
A cold crypto winter would be one of the reasons behind the shutdown of Localbitcoin, but I don't think this is the main reason. There would be some law enforcement issues as well. It's true that their volume has dropped due to the many competitors on the market. Especially centralised exchanges like Binance started p2p exchange. A large number of cryptocurrency users have been involved with centralised exchanges, and often we get all services in one place. Hence, individuals lose their interests in other p2p exchanges because of centralised exchanges.
It is not only LocalBitcoins, there are some P2P platforms closed their services too like Paxful, 2 months after LocalBitcoins.
Paxful is shutting down
Paxful is shutting down
You must have missed that paxful came back! try accessing the website again
According to them, localbitcoins lost popularity and their trade volumes became very less. For this they were forced to shut down operations. But deep down we know that, if any one asks for P2P platform, then LBC comes in the mind first. So this reason is still unbelievable for many traders. Some also say that Paxful was the main reason behind this shut down. People saw more features in Paxful and hence moved there completely. The actual or convincing result for the shutdown, still remains as a mystery.
Because apparently, bitcoin/crypto people like to use no KYC/AML stuff(understandably so). Unfortunately with the case of LocalBitcoins, they were forced by the hands of the authorities to ask for AML/KYC of their customers mandatorily.
I have posted this when they announced that they will stop operating. Based on their own statement;
Quote from: https://localbitcoins.com
Why is localbitcoins terminating the service?
Localbitcoins trading volumes have been declining for a long time, and there is no big enough market demand for our services anymore.
Localbitcoins trading volumes have been declining for a long time, and there is no big enough market demand for our services anymore.
I believe this is the main culprit as well. Because had they been getting a good flow of trading volume, it's likely they'll be able to hold out during the crypto winter like other companies.
It is not only LocalBitcoins, there are some P2P platforms closed their services too like Paxful, 2 months after LocalBitcoins.
Paxful is shutting down
Paxful is shutting down
You must have missed that paxful came back! try accessing the website again
My first bitcoin buy from Local Bitcoin and it was my favorite p2p site. But I don't understand why and what is the main reason to closed buy/sell service by local bitcoin? 
It is since February and now you talked about it. You are too late to realize about their service closure.LocalBitcoins Exchange Closed After 10 Years of Operation.
It is not only LocalBitcoins, there are some P2P platforms closed their services too like Paxful, 2 months after LocalBitcoins.
Paxful is shutting down
They did it by stricter regulations. Even Kucoin required mandatory KYC a few months after that.
Before LocalBitcoins and Paxful, there is another one in October 2022, Localcryptos.
LocalCryptos is shutting down
Base on google, this is their reasons.
I have posted this when they announced that they will stop operating. Based on their own statement;
Quote from: https://localbitcoins.com
Why is localbitcoins terminating the service?
Localbitcoins trading volumes have been declining for a long time, and there is no big enough market demand for our services anymore.
Localbitcoins trading volumes have been declining for a long time, and there is no big enough market demand for our services anymore.
@OP, you can use https://localmonero.co/ and https://agoradesk.com/
If you will read their statement it is because of the bear market. But of course it's not the only thing that matters, that time they required their users for KYC, as for the requirements, many users stop being active there due to that and lots of reasons including of locking of accounts too.
Quote from: LocalBitcoins will discontinue its service
We are therefore sad to share, that regardless of our efforts to overcome challenges during the ongoing very cold crypto-winter, we have regretfully concluded that LocalBitcoins can no longer provide its Bitcoin trading service
Base on google, this is their reasons.
But I don't think it's the reason because they exist since 2012 when Bitcoin price was below $1K and there was a dump in 2018, yet they were not shutdown at that time.
They were known as No KYC P2P, since they implement KYC mandatory rule on 2019, it's where they lost their customers.
Anyway, move this thread to Service Discussion section.
LocalBitcoins, one of the oldest and best-known Bitcoin exchanges, is closing after a decade of service, with the peer-to-peer platform citing the “ongoing very cold crypto-winter” as the reason for stopping operations.
But I don't think it's the reason because they exist since 2012 when Bitcoin price was below $1K and there was a dump in 2018, yet they were not shutdown at that time.
They were known as No KYC P2P, since they implement KYC mandatory rule on 2019, it's where they lost their customers.
Anyway, move this thread to Service Discussion section.
My first bitcoin buy from Local Bitcoin and it was my favorite p2p site. But I don't understand why and what is the main reason to closed buy/sell service by local bitcoin?
Jump to: