- LocalBitcoins will suspend all its Bitcoin trading services from February 16.
- The Bitcoin exchange began in 2012 with the mission to “bring Bitcoin everywhere.”
Finland-based LocalBitcoins, one of the longest-running Bitcoin exchanges, declared the permanent shutdown of its operations in the crypto market on Monday. LocalBitcoins is going to cease its 10-year-long Bitcoin trading service due to its inability to withstand and overcome the challenges of this crypto-winter.
LocalBitcoins announced:
“We are sad to share that regardless of our efforts to overcome various challenges during the ongoing, very cold crypto-winter, during which our volumes and market share have continued to decline, we’ve regretfully concluded that LocalBitcoins can no longer provide a Bitcoin trading service.”
The facility that allowed new sign-ups on the exchange was suspended just after the release of the announcement. Markedly, all Bitcoin trading and wallet services will be terminated on February 16, marking its exit from the crypto sector.
Expiration of LocalBitcoins
Since its origin in 2012, LocalBitcoins served its mission to “bring Bitcoin everywhere.” With expressing their gratitude to their customers on Twitter, LocalBitcoins laid down the guidelines and instructions related to funds’ withdrawal. Users can only withdraw Bitcoins from the exchange by logging in to their existing trading account after February 17.
The Bitcoin exchange announced:
“We encourage all Customers to withdraw their funds from their LocalBitcoins wallets in the next 12 months.”
Back in history, several old Bitcoin exchanges recorded different reasons behind their shutdown. Notably, MtGox, the oldest Bitcoin exchange, met its tragic end in 2014 due to security breaches. While, MtGox’s rival, Virtual World Exchange (VirWoX) which operated for 12 years, closed by 2020 due to regulatory constraints.
Similarly, the Bitcoin exchange TradeHill shut down due to operational and regulatory issues faced by its bank. Declining exchange volumes and market share amid the crypto winter is the reason for the close of LocalBitcoins.
