The ongoing crackdown on privacy-focused cryptocurrencies has claimed another victim, with LocalMonero, a peer-to-peer trading platform for the Monero privacy coin, announcing its closure. This move marks the latest development in the targeted effort against privacy coins and protocols.

LocalMonero's sudden shutdown came on May 7th, with the platform disabling new user registrations and advertising landing sites. The exchange will officially cease trading spot and margin pairs of the privacy-focused cryptocurrency on May 14th. Although the company cited "internal and external factors" for its decision, it failed to provide a specific reason for the closure. Users have been advised to withdraw their funds by November 7th, when the website will shut down, or risk losing their balances.

Launched in 2017, LocalMonero aimed to capture a share of the crypto trading platform market as an alternative to LocalBitcoins. Despite the team's optimism about Monero's future, the platform's closure has raised concerns about the dwindling privacy coins and protocols industry. Seth for Privacy, a privacy advocate, lamented the shutdown, stating that LocalMonero played a crucial role in the no-KYC Monero ecosystem and warning of an "all-out anti-privacy crypto war."

The regulatory environment has indeed become increasingly hostile towards privacy coins, with financial watchdogs scrutinizing them closely. Recent examples include the charges against the founders of Samourai Wallet and the shutdown of Wasabi CoinJoin and Trezor Coinjoin. As the regulatory landscape continues to evolve, the future of privacy coins and their fungible ecosystem looks uncertain, leaving privacy advocates and cryptocurrency enthusiasts on high alert.