Robert Steinadler, 2 months ago

LocalBitcoins is closing down for good after 10 years of service

Most Bitcoin veterans know LocalBitcoins. A pioneer in peer-to-peer trading Bitcoin and one of the oldest services available to the Bitcoin community worldwide. Today, the company behind the platform had sad news for their customers: LocalBitcoins is closing its doors for good.

What is LocalBitcoins and why is the platform shutting down all operations?

LocalBitcoins was one of a kind

Most services that involve trading are offering the functionality of a broker or an exchange. Meaning that each buy or sell order is either executed against an order book or is filled by the broker entirely.

LocalBitcoins was very different from that model by offering an open and free marketplace to Bitcoin peer-to-peer. This was very exciting especially when the platform started in 2013. Back then, arbitrage was a real option because buyers and sellers negotiated prices with each other. This created massive opportunities.

But LocalBitcoins was not only a place where one could make a good bargain but also a place that brought Bitcoiners from the whole world together.

Only withdrawals are allowed

Starting yesterday, new signups were disabled. Next week on February 16th, the LocalBitcoins wallet and trading will be suspended. From that moment on, account holders can only withdraw their coins from the platform.

After that day, the platform will allow the withdrawal of funds for one year. Customers are well advised to act accordingly and secure their precious BTC. 

The platform seizes its operation after US authorities claimed that it had connections to Bitzlato. According to LocalBitcoins, Russian customers were expelled from trading in October last year and no direct connections were ever made or initiated between the two platforms. LocalBitcoins was regulated by the Finnish Financial Supervisory Authority and all customers had to identify themselves before being able to trade on the platform.

Are you looking for a new home?

In case you’ve traded on LocalBitcoins so far, it might be a good idea to settle elsewhere. LiteBit offers a lot of functionalities that you are used to such as the LiteBit wallet that supports not only Bitcoin but also dozens of other crypto assets.

While we don’t enable peer-to-peer trading, Bitcoin can be bought and sold on Litebit securely and easily. Unlike with peer-to-peer trading, you save yourself some unnecessary extra steps and you can use several payment methods to buy crypto or withdraw cash to your bank account.

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
FED increased rates by 25 bps  - Crypto reacts neutral

Mar 22, 2023

Today it was about that time again. The FOMC meeting came to an end and once again the press conference with Jerome Powell was highly anticipated. Why was this recent decision perceived as important by many analysts and how did Bitcoin and the market react?

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • About LiteBit
  • Careers
  • Support
  • Sell
  • News
  • Education
  • Affiliates
Subscribe for updates

Sign up to stay informed via our email updates

Explore popular coins
© 2023 LiteBit - All rights reserved