LocalBitcoins is a peer-to-peer platform for Bitcoin exchange based in Finland. The platform enables its users to exchange BTC with each other, taking a commission for their middleman work.
On the 9th of February 2023, the firm suspended new sign-ups, while on the 16th, it will suspend trading and use of the LocalBitcoins wallet except for fund withdrawals. Payouts will be possible for the next 12 months.
While the company’s CEO and others in charge cite crypto winter and lower trading volume as the reasons for such an abrupt decision, there might be more behind. The company’s name appeared in the United States Financial Crime Enforcement Network’s report concerning the recently shut down BitZlato. LocalBitcoins was one of the biggest Bitcoin senders to this Russia-linked platform, accused of money laundering, amongst other charges.
Let us remind you that BitZlato CEO and several other senior managers have been arrested in Europe. The exchange’s co-founder, Anthon Shkurenko, was detained in Moscow on the 9th of February but released shortly after.
It’s yet to be seen whether other exchanges from the said report will make the same decision as LocalBitcoins. We will keep an eye on the events and keep updating you.
The post LocalBitcoins To Close Due to So-Called “Crypto Winter” appeared first on Global Fraud Protection.