Exploring Alternative Platforms as LocalMonero Winds Down Operations
Alex Daneo, co-founder of LocalMonero, announced on Reddit the platform’s closure “due to a combination of internal and external factors.” A Cointelegraph interview reveals that “the wider hostility toward privacy-centric products and services was certainly a factor.” LocalMonero will cease new signups and ad postings immediately. Trading activities will halt by May 14 and completely shut down on November 7.
Numerous individuals in the Monero community perceive it as a direct assault on their financial privacy rights. Advocates for freedom have characterized the present regulatory environment as a “crypto crackdown.” Negative reactions are not surprising as finance regulators have been targeting privacy coins and services:
- The co-founders of the cryptocurrency mixer Samourai Wallet were apprehended on allegations related to money laundering in April.
- Phoenix Wallet, a provider of Bitcoin Lightning and privacy services, has suspended operations.
- Wasabi, the European counterpart to Samourai, has discontinued its coinjoin coordinator.
- AgoraDesk, a P2P platform for Bitcoin and Monero, is winding down its operations.
- Kraken has recently stopped offering Monero trading in Ireland and Belgium.
Challenges Faced by LocalMonero Users
Users are confronted with various challenges that arise from the platform’s closure. These challenges extend beyond mere inconvenience. One of the primary reasons users flocked to LocalMonero was its emphasis on privacy. The platform didn’t require extensive KYC (Know Your Customer) procedures, allowing users to preserve their anonymity.
The closure also raises concerns about the security of users’ funds and personal information. Users must withdraw their funds from the platform promptly and take appropriate measures to safeguard their cryptocurrency assets.
LocalMonero provided a marketplace for users to buy and sell XMR in various fiat currencies and payment methods. Users may encounter difficulties in finding alternative platforms with similar liquidity and trading volumes.
Exploring Alternative Platforms
With LocalMonero ceasing operations, users may seek alternative platforms that offer comparable privacy protections. getmonero.org recommends:
- Bisq– a decentralized exchange (DEX) that offers a wide range of fiat currencies and payment methods. Trading fiat for XMR and vice-versa isn’t available, but BTC and fiat are possible. Users can buy and sell XMR (by trading BTC) while maintaining their privacy via decentralized escrow and arbitration services.
- Hodl Hodl– allows users to trade Monero and other cryptocurrencies using multi-signature escrow and smart contracts. Like Bisq, there are no KYC requirements, and users can only use fiat to buy BTC.
- BasicSwap– a decentralized cryptocurrency exchange platform facilitating direct swaps (atomic swaps) between various crypto coins without intermediaries.
Other options coming soon:
- Haveno– set to become a decentralized exchange for cryptocurrency and fiat currencies, operating on the principles of non-custodial trading. The platform is built upon the Tor network and Monero blockchain for enhanced privacy and security.
- Serai– will be a decentralized exchange (DEX) supporting swaps between BTC, ETH, XMR, and itself based on liquidity pools.
Tips for Transitioning to Alternative Platforms
Here are some practical tips to help users navigate the transition from LocalMonero to another platform:
Take the time to research and compare different alternative platforms. Look for exchanges or marketplaces that offer similar features to LocalMonero, such as privacy-focused trading, a variety of fiat currency options, and user-friendly interfaces. Read user reviews and feedback to gauge the reputation and reliability of each platform.
Choose platforms that prioritize user privacy and anonymity. Look for features such as end-to-end encryption, non-custodial trading, and minimal KYC requirements. Consider using privacy-enhancing tools like VPNs or Tor to further protect your identity and browsing activity.
Take steps to secure your accounts on alternative platforms by enabling two-factor authentication (2FA), using strong and unique passwords, and regularly monitoring your account activity for any suspicious behavior. Consider using hardware wallets or cold storage solutions to store your cryptocurrency funds securely offline.
If you still have funds stored on LocalMonero, withdraw them promptly before the platform shuts down completely. Follow the withdrawal instructions provided by LocalMonero and double-check the accuracy of your withdrawal address to avoid any potential loss of funds.
Conduct due diligence to ensure the legitimacy and security of alternative platforms before depositing funds or engaging in trading activities. Research the platform’s history, team members, regulatory compliance, and security measures to assess the level of risk involved.
Start with small trades or transactions when transitioning to a new platform. Familiarize yourself with the platform’s interface and features. This allows you to test the platform’s reliability and performance before committing more funds.
Stay informed about any updates or changes related to the alternative platforms. Follow official announcements, news outlets, and community forums to stay up-to-date on platform developments, security vulnerabilities, and regulatory changes that may impact your trading experience.