The ban of this platform in Iran is an answer to the sanctions imposed by the United States more than a year ago
In a message published on the website of the cryptocurrency platform Localbitcoins.com, at the end of May, the blockade of all transactions that were made to users located in Iran was announced.
These users complained that the service did not allow them to execute any type of operation, purchase or sale with cryptocurrencies. Without knowing exactly what was happening with their funds, users reported to each other and issued complaints to the operator.
The news had not been confirmed by any of the official entities of Localbitcoins.com. After several users had broadcast the fact on local Telegram networks and other platforms, the cryptoexchange page system began issuing the message prohibiting operations in the country.
On the website of the exchange company for the Arab country, a sent message says: “Unfortunately, LocalBitcoins is currently not available in your selected region”. After this statement, local media reported the news and confirmed it to its users.
Currently, and according to local media, it is known that the ban is directly related to local laws in Finland, where the peer-to-peer (P2P) cryptocurrency transaction portal is based. Localbitcoins.com is always adjusted to the laws of its place of origin, with the aim to operate in the rest of the countries.
Not only Localbitcoins.com has confirmed the suspension of its operations in that Asian country. Other large portals of transactions with cryptocurrencies, such as Coinbase and Binance, have also made the blockade. Both portals are also recognized as large in commercial operations with cryptocurrencies and they would have large volumes of transactions in the Islamic territory.
The blockades of these portals of commercial transactions with cryptocurrencies obey to the strong commercial sanctions within the country, imposed from the United States, more than a year ago, by the current administration of President Donald Trump. This happens after the withdrawal of diplomatic agreements related to nuclear disarmament in the Asian nation.
For merchants and natural users, portals such as Localbitcoins worked as one of the best alternatives to overcome the blockade in the country and make international purchases, since to use these portals it is not necessary to have any type of credit cards or international bank accounts. They worked, in another aspect, as a way to save and mobilize funds between exchanges and shipments and remittance receipts.
Recently, Coindesk interviewed an Iranian merchant who was affected by the blockade of the exchange portal. “Since I negotiated in relatively high volumes, LocalBitcoins was my best option because I could find good deals with real people. In local exchanges, the rates are unfavorable in many cases, while the total volume of assets is low. For example, you can barely find two bitcoins for sale on any given day”, he commented.
Localbitcoins has not issued any opinion about the ban imposed on this location and has only limited to publish a tweet referring to this case: “Our services are not available in your region for customers based on risk”. Users still waiting and wishing the return of these operations in their country.
By María Rodríguez