LocalMonero Shutdown Is Another Blow for Privacy Tech

After nearly seven years in service, we’ve had to make a tough call and shut down our platform, as a result of both internal and external influences.

I’m deeply grateful for the affection and encouragement I’ve received throughout my journey. I wouldn’t be here without your unwavering support. You all hold a special place in my heart.

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It’s clear why AgoraDesk decided to close shop despite no explicit explanation given. The past few months have seen several peer-to-peer crypto trading platforms like LocalBitcoins and Paxful announce their shutdowns. This trend can largely be attributed to regulatory challenges.

As a researcher examining the current landscape of the industry, I’ve noticed that regulatory hurdles are increasingly becoming more complex, particularly in the peer-to-peer market and most notably in the United States. In light of these challenges, we’ve made the decision to prioritize security by encouraging users to adopt self-custody solutions and engage in trading activities elsewhere. Ray Youssef, former CEO of Paxful, expressed this sentiment when announcing the closure of the platform.

The challenges for LocalMonero were significantly increased due to regulatory scrutiny on privacy coins like Monero. Notable crypto exchanges, including OKX, Binance, and Coinbase, have voluntarily removed privacy-focused tokens from their platforms, making LocalMonero one of the remaining options for buying Monero.

On LocalMonero, there was usually a small price increase for token purchases due to the demand from buyers to acquire tokens through a platform with minimal identification requirements. Sellers often requested ID as an added safety measure, but this wasn’t always a standard practice. Notably, LocalMonero provided “arbitration bonds,” which kept an equivalent value of Monero in safekeeping. In case a seller failed to transfer the funds, LocalMonero would compensate users with these held funds.

Where to buy monero now?

As a researcher studying the Monero ecosystem, I’ve come across LocalMonero being referred to as a crucial element, according to Seth For Privacy, who advocates for privacy in semipseudonymous terms. He made this statement on X. With LocalMonero’s shutdown, monero users face a limited number of options for converting fiat currency into Monero tokens. This development is an incredibly sad day, as expressed by Seth.

The Bisq decentralized network supports exchanging cryptocurrencies for Monero. Kraken continues to provide an option to buy Monero, but restricts access for users in specific countries such as the U.K. and Australia, with possible additions of Ireland and Belgium in June. Alternative, less secure methods include purchasing directly from individuals on messaging platforms like Telegram.

As a crypto investor, I’ve come across LocalMonero’s recommendation for utilizing decentralized exchanges called Haveno Serai. These platforms are non-custodial and decentralized, which means that they don’t hold your funds for you. They’re still in the process of launching fully, but have generated some buzz due to their open-source nature.

As a crypto investor, I’ve come across the saying “where there’s a will, there’s a way” when it comes to making anonymous transactions using cryptocurrencies like Monero. However, the reality is that the use of blockchain-based privacy technology is becoming increasingly challenging. It seems unlikely that this trend will change anytime soon.

Each day the Monero network remains operational and Monero coins are utilized for transactions, serves as a testament to the robustness and durability of decentralized systems.

“Feds really must hate monero. Guess it’s a proof to keep using it,” as one Reddit user said.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.