By Michael Scott
The Finland-based peer-to-peer trading platform LocalBitcoins has announced plans to cease operations. The company announced on February 9 that the firm would terminate operations due to the rough crypto winter. The company encouraged the customers to withdraw their assets from the platform.
Crypto Winter Compels LocalBitcoins to Shut Down
LocalBitcoins has been operating for the last ten years, facilitating the buying and selling of the largest crypto asset Bitcoin (BTC). The firm has adopted changes in the industry to improve conformity and user experiences by investing in Know Your Customer (KYC) standards.
Despite the remarkable achievements, the firm has announced plans to cease operations. The firm’s statement cited the prolonged crypto winter and aggressiveness of the bears in the crypto hemisphere as exposing LocalBitcoins to high risk on investment.
As per the report by the LocalBitcoins team, the customers are urged to withdraw as soon as possible. The team intends to halt all the withdrawals before the end of this year.
The management has suspended new account openings and trading activity using the LocalBitcoins wallets.
Additionally, the company acknowledged the support from the LocalBitcoins community during the last ten years’ journey.
Crypto Firms Exiting From the Industry
The crypto market headwinds have subjected many companies to cease operation. Recently, the digital payment company Affirm shut down its crypto unit and downsized employees.
Before this, a Solana-based crypto exchange Everlend shut down its user platform, citing liquidity crutches.
In the crypto empire, most crypto firms are battling liquidity woes translating to headcount reductions and business closure.
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