10-Year-Old P2P Crypto Exchange LocalBitcoins Shuts Down
LocalBitcoins, one of the oldest P2P crypto exchanges, has unexpectedly announced its closure "due to market conditions."
On the evening of February 9, 2023, LocalBitcoins, a P2P Bitcoin exchange founded in 2013 and based in Helsinki, Finland, announced that it will be shutting down.
— LocalBitcoins (@LocalBitcoins) February 9, 2023
The exchange stated:
“We are deeply saddened to share that despite our efforts to navigate the current crypto winter, we have concluded that LocalBitcoins can no longer continue offering Bitcoin trading services.”
Trading activities will cease on February 16, after which users will only be able to access the platform to withdraw their funds. The exchange will maintain withdrawal support for the next 12 months.
LocalBitcoins was a P2P platform that allowed users to trade Bitcoin directly with each other and pay via bank transfers or international money transfer services.
In the early days of the crypto market, and especially following the collapse of Mt. Gox, LocalBitcoins emerged as a primary method for buying and selling Bitcoin. It also served as a venue for traders to engage in arbitrage, buying Bitcoin P2P and reselling it on CEXs, or vice versa.
At its peak during the 2017 bull run, the platform saw weekly trading volumes consistently surpassing $100 million for several weeks. However, since the beginning of 2023, LocalBitcoins' weekly volume has averaged around $5-7 million.
