Russia announced that it has blocked the LocalBitcoins exchange. It was learned that the exchange, which could not be accessed without tools such as VPN, was blocked by the Russian Federal Information Technologies and Mass Communication Supervisory Authority (Roskomnadzor). Finland-based crypto exchange LocalBitcoins did not make any statement regarding the access block.
According to the analysis shared by CryptoDiffer on Twitter, Russia was the country with the highest volume of cryptocurrency LocalBitcoins in April and May 2020. For this reason, it is stated that the move to block access to LocalBitcoins will be a great loss for the company.
Access Ban from Russia to Crypto Exchanges
Roskomnadzor closed the LocalBitcoins URL for illegal transactions. According to official data, LocalBitcoins was blacklisted on the order of the Onezhsky City Court on July 21, 2020. While it is stated that the exact date of the access barrier to the crypto exchange is unknown, it has been learned that some users in Russia have started to have access difficulties as of late September 2020.
Roskomnadzor announced a while ago that it has also blacklisted the website of Binance, the world’s largest crypto exchange. Binance officially acknowledged this news on September 24 and made the necessary objections.
High Crime Rate in Finland Crypto Exchange
With this move by Russia, it has been talked about that LocalBitcoins allows illegal activities such as money laundering. According to a report published by CipherTrace, LocalBitcoins was the exchange with the highest crime rate among Finnish exchanges in the first 5 months of 2020. The report contains the following sentence about the exchange in question:
“For three years in a row, Finnish stock exchanges ranked 1st among the highest BTC criminal exchanges, and 12.01% of all BTC funds came directly from these criminal sources. LocalBitcoins hosted 99% of these crimes. “