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Localbitcoins announces new update to its services

Localbitcoins

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TL;DR

  • Localbitcoins updates users about its services
  • Users have 12 months to withdraw their funds
  • Localbitcoins exec denies relationship with Bitzlato

Localbitcoins has released an update stating that the platform is shutting down all activities after ten years in service. According to the company based in Finland, the termination was due to the crypto winter that has enveloped the market. Additionally, the firm cited grounds for needing more cash to run the service in its letter. Finally, the statement regretfully stated that the firm tried to do everything possible to ensure its services ran but could not make it happen.

Users have 12 months to withdraw their funds

The company’s published statement urged users to withdraw all their digital assets currently stored on the platform. It also urged all holders of BTC on the platform to remove their Bitcoin as early as possible. The platform also mentioned that all users have a grace of 12 months to withdraw their digital assets from the platform.

Localbitcoins advised that they do all these swiftly to avoid late days of drama associated with servers going off and some other issues. In the timeline stated in the document, the firm will no longer allow new entrants starting from February 9, trading will be suspended by February 16, and users can only withdraw assets on the platform only after these periods.

Localbitcoins exec denies relationship with Bitzlato

The news is coming off the back of a recent article released by the financial crime network of the US government named Localbitcoins. According to the report, the peer-to-peer platform is allegedly one platform helping Bitzlato send money from the United States to Russia. Regulators also launched an official investigation into the activities of Bitzlato, accusing the firm of helping criminals and circumventing international sanctions to transfer money into Russia. However, one company’s executives have refuted such claims because they share no official or personal relationship with Bitzlato.

He mentioned that the pair conducted business last October 2022, and Localbitcoins has stopped serving Russian users since the sanctions were announced. The executive also claimed that the elected body had regulated the platform in Finland, which has adhered strictly to the laws released by the body, including AML and KYC. Beforehand, Russia used to be a big market for Localbitcoins, with the platform hitting its highest value in June 2020 after an influence from the European country. However, things have recently gone from bad to worse for the exchange as its trading volume has dipped drastically.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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