LocalBitcoins has decided to stop operating in Iran due to compliance issues. LocalBitcoinsis one of the most popular peer-to-peer crypto exchanges in the world. However, the platform was criticized by the community when it banned in-person cash trading.
LocalBitcoins Suspends Operations in Iran Due to Regulatory Constraints
LocalBitcoins is again generating controversies after it decided to stop providing services to customers in Iran. That means that the platform is little by little losing customers that were using the service due to its flexible and convenient way to connect users around the world that wanted to sell and buy Bitcoin.
The platform explains that it is currently not available for users in Iran. Nonetheless, Iranian users on the site are able to withdraw their funds but not exchange them between individuals. In a recent conversation on the Unchained Podcast, LocalBitcoin’s Community Manager, Vera Xavier and the Chief Customer Success Officer, Elena Tonoyan, explained the reasons behind the decision that the company took.
One of the reasons to ban these individuals from Iran is related to regulations. The cryptocurrency market was more regulated and there was still a lot of grey area in which it is not clear how they have to operate.
The representatives explained that they are currently acting under Finnish law and they have users from many different countries. Due to some regulatory reasons, they have to stop offering services to other regions such as Iran. Nonetheless, they mentioned that they couldn’t provide more information about this because there are other individuals taking these decisions at the company.
LocalBitcoins is very popular in countries such as Venezuela where individuals are selling and buying digital currencies because they need to and not because of speculation. Clearly, the decision that the company took is not going to be helping users in the crypto market.