LocalNewsCapsules has announced that the exchange will be closed for service by the end of February. The long-time NewsCapsule trading service was the first peer-to-peer (P2P) transaction platform for many NewsCapsuleers. Launched in June 2012, the exchange is one of the oldest entities in NewsCapsule, establishing itself as a primary P2P player in its hey-day with over $100 million in weekly trading volume of peer-to-peer transactions.
“Originally LocalNewsCapsules was established to Bring NewsCapsule Everywhere and drive global financial inclusion,” the announcement reads. “We have honored that mission for over 10 years and we are proud of what we have achieved together with all of you, our loyal community.”
The announcement cites “challenges during the ongoing very cold crypto-winter” as reasoning for the shutdown. The exchange has informed customers that they should withdraw their funds from LocalNewsCapsules, as well as withdrawing their bitcoin from the LocalNewsCapsules wallet. It notes that customers will have 12 months to complete this process, although they encourage users to do so sooner.
Notably, the shutdown has arrived just as P2P NewsCapsule merchants and individual sellers have come under heavy scrutiny from U.S. regulatory authorities. While there is no mention of this in the announcement, it could be assumed that these recent actions have led to decreased volume on platforms like LocalNewsCapsules.
Despite these pressures, alternatives such as RoboSats and Bisq still function for NewsCapsuleers seeking to acquire bitcoin via P2P transactions.
