A P2P Bitcoin and Cryptocurrency Exchange called LocalCryptos is Closing

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Last Updated on October 23, 2022 by Bitfinsider

Numerous problems, according to LocalCryptos, contributed to the decision of the business to close. The first of these factors is a bear market in the sector. The team members’ health and probable issues with regulatory development are mentioned as further justifications in the conversation.

No new accounts may be opened after November 4 in accordance with the exchange platform’s wind-down timeline. All new trade creation will end by November 18. Current users are still able to access the platform, but they can only complete transactions via the non-custodial online wallet.

On the LocalCryptos website, the wallet user interface will always be accessible. Because the exchange is not a custodial entity, its users’ funds are primarily kept in self-hosted wallets. Or by employing a blockchain-based non-custodial escrow system.

In the meanwhile, the website will keep publishing its weekly Bytes. The discussion focused on methods for making the newsletter a stand-alone business and explaining the Decentralized Financing (DeFi) technology and industry as new innovations appear daily in the field.

The business responded that all operations would carry on as usual until November 4th when asked about critical dates. Later, they noted that while new account creation would be prohibited, existing users could still utilize LocalCryptos as intended till November 4th.

Current users can still utilize LocalCryptos’ non-custodial online wallet interface. Trades that are still open after this date can typically be closed.

Concerns regarding how they would get their cryptocurrency back also existed. The business declared: “A non-custodial platform, LocalCryptos does not keep your bitcoin and has never done so. Instead, your cryptocurrency is kept secure in a self-hosted wallet or a non-custodial escrow system on a blockchain. The wallet user interface on the LocalCryptos website will always be accessible. Users may also view and transfer their cryptocurrency using the free LocalCryptos Wallet Backup Explorer program.”

Theoretically, it is impossible for them to “recover” or have access to their money, claimed Localcryptos. They think anyone who has been solicited by a person claiming to be a LocalCryptos representative and offering a “password reset” or “wallet recovery” service is unquestionably a victim of fraud and should get in touch with the business through its sole legitimate help desk.

Even if LocalCryptos’ decision might surprise some, the current status of the industry has resulted in the failure of a number of companies that specialize in cryptocurrency. Siacoin’s developer, Skynet Labs, declared a decline owing to financial constraints. After failing to find a buyer, German cryptocurrency bank Nuri announced its liquidation.

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