The cryptocurrency exchange platform LocalBitcoins closed its doors on June 28, 2020, leaving Latin American users without one of their main sources of buying and selling Bitcoin. Cryptocurrency had gained great acceptance in Latin America in recent years, and LocalBitcoins was one of the main drivers of its adoption. This article explores the causes of the platform's closure and its impact on the use of Bitcoin in the region.
LocalBitcoins was launched in 2012, in the midst of the Bitcoin adoption era. The platform allowed users to buy and sell Bitcoin directly from each other, without the need for an intermediary. This made the platform extremely popular in Latin America, where wallet and exchange options were limited.
However, the closure of LocalBitcoins was due to international regulatory pressure. As a global cryptocurrency exchange market, LocalBitcoins was required to comply with identification and law compliance requirements of all countries in which it operated. This, along with pressure from local financial authorities, led to the platform's closure.
The closure of LocalBitcoins was a significant loss for the use of Bitcoin in Latin America. With its closure, many users in the region lost one of their main sources of buying and selling cryptocurrencies. The platform was also a driving force behind the development of cryptocurrency applications in the region.
Despite the closure of LocalBitcoins, the use of Bitcoin in Latin America remains a reality. Users in the region have access to a wide range of cryptocurrency exchange platforms, as well as cold wallets, P2P exchanges, and other decentralized means to buy and sell cryptocurrencies. These platforms are also helping to drive the development of cryptocurrency applications in the region.
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