There are fewer options for peer-to-peer trading. If a well-known P2P exchange closes, it could be risky for us. Many people prefer P2P trading over centralized exchanges like Binance. While there might be other P2P exchanges opening up, LocalBitcoin was a trusted choice. I'm not sure why a P2P exchange would shut down. Maybe it's just for some temporary rules.
LocalBitcoins started off as a p2p exchange, but along the way they made kyc compulsory, so at the time of shutting down they were not a p2p exchange, and that is the major reason why they shut down, they lost most of their customers as they were using the service because they wanted to trade p2p, but since LocalBitcoins could no longee provide that, they had to look for other services.
Here is a list of p2p exchanges:
https://kycnot.me/?t=exchange