LocalBitcoins, a platform for P2P cryptocurrency trading, announced that the service will be unavailable in 13 US states from January 26
The statement says that only residents of Illinois, Kansas, Montana, New Hampshire, New Jersey, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin will be able to use the services of the platform.
LocalBitcoins tightens the nuts
LocalBitcoins.com is leaving all other states. In the next two weeks, operations will end in Florida, Connecticut, Utah, Arkansas, Nevada, Nebraska, Mississippi, Iowa, District of Columbia, North Dakota, Minnesota, Kentucky, and Vermont. From the rest of the states, except for the ten listed above, the company will leave before the spring of 2021.
Following the January 26 deadline, LocalBitcoins will begin closing and will allow customers to make one last withdrawal.
The news was published in a thread on Reddit, but the post was soon deleted. The editors contacted LocalBitcoins with a request to comment on the situation, and the company confirmed that everything was true.
According to Coin Dance, the weekly trading volume of LocalBitcoins in the US reaches $ 4.8 million.
The company did not elaborate on what prompted it to make this decision, but only apologized for the inconvenience.
Meanwhile, the news came shortly after the US Securities and Exchange Commission (SEC) sued fintech startup Ripple (XRP) for selling unregistered securities. Many cryptocurrency exchanges found themselves in an awkward position and were forced to remove the coin from the listing, or suspend trading in order to protect themselves from possible claims from the SEC.
The SEC decides everything
It is possible that the SEC’s aggressive policy towards companies processing cryptocurrency transactions prompted LocalBitcoins to make this decision. Anti-money laundering and anti-fraud policies vary widely from state to state. Peer-to-peer (P2P) transactions do not always meet the standards and requirements of “know your customer” (KYC) and anti-money laundering (AML) procedures
LocalBitcoins has confirmed the withdrawal, but has not yet made an official statement.