Localbitcoins, a Helsinki, Finland-based bitcoin exchange founded in 2012, is closing operations after more than a decade in service. The company's operators attributed the closure to the "ongoing crypto winter," which prevented them from continuing to offer bitcoin trading services.
Localbitcoins, the first peer-to-peer (P2P) bitcoin exchange, is winding down after more than 10 years in business. Announcing the news on its website, the exchange said it would suspend new registrations from February 9, 2023, and suspend trading seven days later, on February 16. After trading is suspended, Localbitcoins users will only be able to withdraw their bitcoins and have 12 months to do so.
“Original Localbitcoins was founded to make Bitcoin ubiquitous and drive global financial inclusion,” the company said on Thursday. “We’ve been fulfilling this mission for over 10 years, and we’re proud of what we’ve accomplished together with all of you our loyal community.
In the early days, Localbitcoins was the exchange of choice for peer-to-peer transactions worldwide. The platform saw strong trading volumes in its first few years, but centralized cryptocurrency exchanges eventually overtook it, causing Localbitcoins to become more prominent in regions without centralized trading options.
In 2019, peer-to-peer exchanges face further challenges when they need to comply with know-your-customer (KYC) regulations. Additionally, Localbitcoins ended face-to-face trading that year, making the platform less attractive for peer-to-peer traders. In 2021, amidst the cryptocurrency bull run and digital currency price recovery, Localbitcoins announced the launch of an Android mobile app. Despite this, Localbitcoins never recovered to 2017 volumes. Even during the 2021 bull run, the platform’s transaction volume continued to decline. Statistics show that trading volumes on Localbitcoins are currently as low as they were during the 2015 bear market. The first week of February 2023 saw a slight increase, with 6.56 million bitcoins traded in 7 days.
