Based on a recent report, Helsinki-based peer-to-peer exchange, LocalBitcoins has blocked its Iranian users from using its services, this new development comes after weeks of rapidly increasing rial trading volumes on the website. The cause for the disconnection which has led to Iran-based users having problems in posting new trades and updating old ones has however not been well understood, but the U.S. sanctions are likely to be the reason.
LocalBitcoins Axe Iranian Traders
When the exchange was questioned by an Iranian user, they replied by stating that:
“If you have an account already, you will be able to withdraw your bitcoins, but you will not be able to use the platform for trading,”
Another statement released on the exchange’s platform for the country stated that:
“Unfortunately, LocalBitcoins is currently not available in your selected region.”
The company even went on social media giant, Twitter to tell many Iranian users that:
“Our services are not available in your region for risk-based reasons.”
LocalBitcoins has always been a very popular cryptocurrency trading website amidst Iranians because of several reasons which include that user’s international credit card information is not required which is very useful as most Iranians don’t have this, it also allows its users to make payments via their local bank accounts, it allowed local bank account documents whenever it wants to find solutions to potential problems which indicates that they have advisors who understand the largely isolated Iranian banking system.
Furthermore, the exchange was relied upon by many bitcoin users in Iran because it makes sure that transactions are safe and fraud is kept at bay by holding funds in escrow until both ends have received final confirmation.
Bitcoin merchant, Soroush Hakim said that:
“Since I traded in relatively high volumes, Local Bitcoins was my best option because I could find good offers with real people,”
