LocalBitcoins: what happened, and where to go instead
LocalBitcoins has shut down
LocalBitcoins is closed: the original peer-to-peer bitcoin exchange shut down in February 2023, ending roughly a decade as the default way to buy bitcoin person to person.
Founded in Helsinki in 2012 by Jeremias Kangas, LocalBitcoins matched buyers and sellers in nearly every country, escrowing the bitcoin while payment moved by bank transfer, cash deposit, gift card or hundreds of other local methods. For people in countries without card rails or friendly banks it was often the only practical on-ramp, and its reputation-score system became the template every later P2P marketplace copied.
Regulation slowly narrowed what made it special: in 2019 it dropped in-person cash trades and tightened identity checks under EU anti-money-laundering rules. In February 2023 the company announced it was closing, citing the very cold crypto winter, and gave users a window to withdraw their bitcoin.
For P2P trading today, Paxful is the closest surviving equivalent (check its compliance history first). Strike covers cheap global transfers, and Kraken is the straightforward regulated exchange route.
- Founded
- 2012
- Headquarters
- Helsinki, Finland
- Status
- defunct
Frequently asked questions
Why did LocalBitcoins shut down?
The company announced its closure in February 2023, citing the prolonged crypto market downturn. Volumes had also fallen for years as tighter KYC rules removed the anonymous cash trades it was known for.
Can I still get bitcoin out of an old LocalBitcoins account?
The official withdrawal window followed the February 2023 closure announcement. If you missed it, your only route is contacting the company through its published channels, and recovery is not guaranteed.
What replaced LocalBitcoins?
Paxful is the closest surviving P2P marketplace. Many former users moved to regulated exchanges like Kraken, or to apps like Strike for transfers.
When was LocalBitcoins founded?
It was founded in Helsinki, Finland in 2012 by Jeremias Kangas and operated for roughly a decade before closing.
Where those users went
3.2PaxfulA P2P marketplace with more than 300 payment methods and a federal guilty plea on its record: tread carefully.- 4.6StrikeLightning-native app for buying bitcoin and sending it anywhere instantly, with no added fee on transfers.
4.7KrakenA 2011-vintage exchange with one of the cleanest security records in the business, heading toward a US stock listing.