LocalBitcoins from Finland is Shutting Down After 10 Years of Service

  • Customers of LocalBitcoins have one year from now to withdraw their cryptocurrency from the LocalBitcoins wallet.
  • The shutting down of LoclaBitcoins is a sign that this crypto winter has pushed some of the best crypto projects to the breaking point.

Buckled under market pressures, LocalBitcoins, a Finland-based bitcoin platform shuts down its operation.

After serving its clients for more than ten years, the peer-to-peer (P2P) bitcoin platform LocalBitcoins, based in Finland, is ceasing operations. Customers of LocalBitcoins have one year from now to withdraw their cryptocurrency from the LocalBitcoins wallet, however, it is recommended that they do so right away to avoid any complications later.

On February 9, LocalBitcoins formally announced the end of its services, blaming the challenging market conditions brought on by the prolonged cryptocurrency winter. Despite desperate efforts, the company is not able to withstand the rough market pressures.

The official announcement was made stating their helplessness that LocalBitcoins can no longer perform its Bitcoin trading service, despite the efforts to overcome every odds during the ongoing very cold crypto-winter.

All users were urged by LocalBitcoins to remove their cryptocurrency holdings from the service and asked to go ahead and remove Bitcoin from their LocalBitcoins wallet. Users will be able to withdraw cryptocurrency from LocalBitcoins within 12 months, the release claims.

What is P2P Trading?

When cryptocurrencies were not as popular as they are now, there were very few exchanges that had adequate liquidity to function as centralized entities. Most of the initial crypto exchanges were based on a P2P mechanism that connected traders via their platform. They charge a small fee from both the users involved in the trade in exchange for the security and escrow services that they provide.

Today, when people are reducing their reliance on centralized crypto exchanges, P2P exchanges are again regaining their lost charm. Apart from reducing the power of a central entity, P2P exchanges also have other benefits including,

  1. P2P exchanges charge a lesser fee when compared to centralized exchanges
  2. P2P exchanges do not need strict KYC to trade on their platforms unlike centralized exchanges
  3. P2P trading is known for providing the best value in exchange of your digital assets. In P2P price is decided by the people involved in the trade

The shutting down of LoclaBitcoins is a sign that this crypto winter has pushed some of the best crypto projects to the breaking point. However, a systematic shutdown is far better than a sudden bankruptcy of an entity that deals with customer funds.

To read more interesting news about crypto exchanges and blockchain regulations, keep following Coingabbar.com. And, don’t forget to share your views in the comments down below.

Also, Read – Ban On Crypto Staking In US Can Lead To ‘Terrible Path’: CEO Coinbase

Bookmark (0)
ClosePlease loginn

Related Posts

A sincere thank you to our valuable sponsors: CoinDesk, Nexo and 1inch

A sincere thank you to our valuable sponsors: CoinDesk, Nexo and 1inch

Discover the cutting-edge services of CoinDesk and Nexo, the leading names in crypto and blockchain, and unlock the full potential of your digital assets.

Bookmark (0)
ClosePlease loginn
U.S. government sold over 9k BTC for $215.7M on March 14

U.S. government sold over 9k BTC for $215.7M on March 14

The US government said it plans to liquidate over 40,000 Bitcoin in four batches during this calendar year.

Bookmark (0)
ClosePlease loginn
Justin Sun’s Grenada ambassadorship to WTO ends

Justin Sun’s Grenada ambassadorship to WTO ends

Grenada’s local media reported that Justin Sun had been recalled after the political party that appointed him lost elections in June 2022.

Bookmark (0)
ClosePlease loginn
More than 50% of Bitcoin mining uses renewable energy

More than 50% of Bitcoin mining uses renewable energy

Almost a quarter of all Bitcoin miners use water to power their setups, while wind and nuclear are the second and third biggest contributors.

Bookmark (0)
ClosePlease loginn
Bittrex to halt US operations by end of April

Bittrex to halt US operations by end of April

The cryptocurrency exchange will only serve global customers going forward.

Bookmark (0)
ClosePlease loginn
Binance.US transitioning to new bank providers; briefly affecting deposits, withdrawals

Binance.US transitioning to new bank providers; briefly affecting deposits, withdrawals

Many transfer methods, including Signature ACH transfers, are affected.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *