Following reports of the silent removal of local cash trades on June 1, LocalBitcoins has confirmed the move.
Global peer-to-peer (P2P) crypto exchange LocalBitcoins has officially confirmed the removal of trading in local fiat currencies, the firm announced in a tweet on June 4.
As previously reported, the Finland-based exchange silently removed cash trading on June 1, which immediately caused some outrage in crypto community.
In the official statement, LocalBitcoins noted that its liabilities are determined by the Act on Detecting and Preventing Money Laundering and Terrorist Financing, which requires the exchange to follow certain sanctions.
LocalBitcoins wrote:
“In order to adapt to the current regulatory environment, we had to reconsider our policy on local cash trades as well as on geographical areas where our service is available, among other platform features. As a consequence, advertisements in the cash category (i.e. local cash trades) were disabled in our platform on Saturday 1st June.”
The move comes on the heels of the news that LocalBitcoins will soon become monitored by the Financial Supervisory Authority of Finland, as the Finnish government passed new legislation for crypto assets earlier this year.
In late May, LocalBitcoins banned Iranian users from using its platform, a move reportedly prompted by the rules of the European Union.
Meanwhile, bitcoin (BTC) has seen a notable decline since June 1, with its price having plunged below the $8,000 threshold earlier today after breaking $9,000 last week.
Bitcoin 7-day price chart. Source: CoinMarketCap
