- LocalBitcoins to close its peer-to-peer (P2P) cryptocurrency platform
- Finland-based Bitcoin trading service operated for more than a decade
- Company attributes closure to a prolonged and difficult crypto winter
LocalBitcoins, one of the longest-running peer-to-peer (P2P) cryptocurrency marketplaces, has announced it will shut down its service. The Finland-based platform, which enabled direct trading of Bitcoin between users for over ten years, informed customers of an upcoming closure and provided instructions for withdrawing funds.
LocalBitcoins ends operations amid prolonged crypto downturn
In a notice sent to users, LocalBitcoins said it will discontinue its platform beginning 9 February 2023. The company has given users a window of up to 12 months to withdraw any remaining funds, but it advised customers to begin the withdrawal process immediately to avoid complications.
The team at LocalBitcoins explained that persistent challenges in the cryptocurrency market — described as a “very cold crypto winter” — led to the decision to cease offering its Bitcoin trading service. Despite efforts to adapt, the company concluded it could no longer sustain operations under current market conditions.
“Regardless of our efforts to overcome challenges during the ongoing very cold crypto-winter, we have regretfully concluded that LocalBitcoins can no longer provide its Bitcoin trading service,” the announcement stated. The message emphasized the company’s regret and noted that the shutdown is the result of sustained adverse market dynamics rather than a single event.
The shutdown process will be staged to minimize disruption. As of 9 February 2023, the platform has stopped accepting new user registrations. Trading activity is scheduled to be suspended on 16 February 2023, after which users will no longer be able to create or fulfill new trades. In the week following that date, LocalBitcoins will also disable its custodial wallet service; users will retain withdrawal access but will not be able to send or receive funds through the platform’s wallet.
LocalBitcoins users are urged to log in, check their account balances and request withdrawals as soon as possible. The company reiterated that while it will maintain withdrawal functionality for up to one year, acting early reduces the risk of delays or access problems that can arise during an orderly wind-down. Customers should also verify any outstanding trade disputes or pending transactions and resolve them promptly to ensure funds are available for withdrawal.
Since its founding, LocalBitcoins built a reputation as a straightforward way for buyers and sellers to connect directly in a decentralized manner. Over the years its marketplace supported a variety of payment methods and enabled localized, peer-to-peer Bitcoin trades in many countries. The closure marks the end of an era for one of the earliest platforms to facilitate person-to-person Bitcoin commerce.
The company’s announcement did not cite regulatory action, security breaches or insolvency as the immediate cause of closure; rather, it framed the decision within the broader context of prolonged adverse market conditions that have affected many crypto businesses. Market participants have faced pressure from lower trading volumes, tighter liquidity, and changing risk assessments, all of which can make long-term operation of niche services difficult.
For customers who need help during the winding-down process, LocalBitcoins advised consulting its official support channels and help pages for guidance on withdrawals and account-related questions. Users should keep records of their account details, trade histories and any communications with counterparties. Those holding Bitcoin on the platform should prepare a secure destination for withdrawals, such as a personal wallet where they control the private keys, or another trusted exchange that meets their security and regulatory preferences.
As the platform ceases trading and wallet operations, users are reminded to act quickly and follow the steps provided by LocalBitcoins to reclaim their funds. The company’s phased shutdown aims to provide sufficient time for orderly withdrawals while winding down services responsibly.