Bitcoin Exchange LocalBitcoins to Close, Citing Market Conditions

LocalBitcoins is suspending the exchange 10 years after its inception as weekly volume has slumped significantly.

February 9, 2023 - Bitcoin exchange LocalBitcoins is set to close on 16th February 2023 in response to the "ongoing very cold crypto winter."

Launched 10 years ago, Helsinki based LocalBitcoins is one of the longest-running exchanges, averaging between $5 million and $7 million in weekly trading volume over the past four months.

This is significantly below 2017 levels when it surged to above $100 million in consecutive weeks according to a report in CoinDance.

"We are sad to share, that 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 company said in a statement.

Trading will be suspended on February 16, after which users will be able to log in only to withdraw their crypto.

LocalBitcoins offered peer-to-peer and escrow services for users looking to buy or sell bitcoin via traditional bank transfers and cash deals across multiple currencies. 

It was a marketplace driving liquidity and helped to spur the arbitrage market as users could sell bitcoin at a spread above spot price and then buy the asset on centralized exchanges for cheaper.