Russia blocks localbitcoins

[romero121]

The telecommunication authority of Russia Roskomnadzor earlier blocked Binance into Russia and added it to the blacklist database. Later the restriction is resolved. Now it has blocked the access to localbitcoins, and people find a way accessing with VPN. Russia is the leading country for the P2P Exchange operation contributing around 20% of the trading.

Russia being one among the supportive country for cryptocurrency have stated bitcoin usage as payment is illegal while people are free to buy and sell which is the reason for the increased trading on Russia through localbitcoins than other countries.

[mk4]

More reasons for people to use other better P2P exchanges such as HodlHodl[1] and Bisq[2]. Like seriously, LocalBitcoins should be irrelevant know due to pretty much little to no difference between these exchanges(besides probably the thicker orderbooks on LocalBitcoins).

[1] https://hodlhodl.com/
[2] https://bisq.network/

[avikz]

That news didn't come as a shocker though! Russia was always an anti-crypto nation like any other communist countries and they have already declared cryptocurrency as not a legal tender long back. So it was no wonder that they would eventually block trading in their country, which has now come into effect! I understand people can still use it through VPN, but a large percentage of population will be effectively discouraged before using localbitcoins now because common people usually don't want to break laws. The only hope is that, we have some other platforms like Paxful or Bisq which may come into rescue at this point!

But if I look for a long term perspective, Russian government will eventually declare cryptocurrencies as illegal. At least the trend is showing this way! It seems like Russian government will ban it in a stepped-up measure.

[davis196]

That news didn't come as a shocker though! Russia was always an anti-crypto nation like any other communist countries and they have already declared cryptocurrency as not a legal tender long back. So it was no wonder that they would eventually block trading in their country, which has now come into effect! I understand people can still use it through VPN, but a large percentage of population will be effectively discouraged before using localbitcoins now because common people usually don't want to break laws. The only hope is that, we have some other platforms like Paxful or Bisq which may come into rescue at this point!

But if I look for a long term perspective, Russian government will eventually declare cryptocurrencies as illegal. At least the trend is showing this way! It seems like Russian government will ban it in a stepped-up measure.

Paxful is basically a scammer marketplace and I was really disappointed by their service.Look at Paxful's Trustpilot score and reviews and then look at Localbitcoins reviews and score on Trustpilot.Localbitcoins is way more legit than Paxful.
I've never heard about Bisq or Hodlhodl.
Anyway,I assume that Russia will ban all the P2P crypto exchanges,since the service which they offer is basically the same.The Russian government doesn't want capitals to get exported outside Russia and cryptocurrencies are an easy way to export money outside the borders.
 

[jackg]

More reasons for people to use other better P2P exchanges such as HodlHodl[1] and Bisq[2]. Like seriously, LocalBitcoins should be irrelevant know due to pretty much little to no difference between these exchanges(besides probably the thicker orderbooks on LocalBitcoins).

[1] https://hodlhodl.com/
[2] https://bisq.network/

Yeah I was kinda disappointed with the $250 limit on bisq... Hopefully those will increase sson - I think even good history accounts have a limit risk of $1k... And bisq likes tor, not sure if that's fully legal over there..

I imagine there's a game the east are playing as to who can make crypto illegal last while maintaining control over their citizens (but not making it look like there's too much control or something). And they're probably under pressure since people with enough knowhow to use bitcoin, probanly have enough to leave the country and get a job elsewhere....

[Bitcoin_bullish]

That news didn't come as a shocker though! Russia was always an anti-crypto nation like any other communist countries and they have already declared cryptocurrency as not a legal tender long back.  

I don't know why you call Russia communist. The economic system running this country has been capitalism for more than thirty years now. China is not a clear communist country anymore either. It is a mixed system today with a government party rooted well in every aspect of Chinese society. The only clear communist societies remaining today are North Korea and Cuba.

Russia has given legal status to cryptocurrencies with a law they passed recently, but they demand all these assets to be declared with their tax authorities.  They also restrict the use of cryptocurrencies as payment options. So the only reason they passed this law was to tax the crypto holders. They have given legal status to Bitcoin and all digital assets.

[jrrsparkles]

That news didn't come as a shocker though! Russia was always an anti-crypto nation like any other communist countries and they have already declared cryptocurrency as not a legal tender long back. So it was no wonder that they would eventually block trading in their country, which has now come into effect! I understand people can still use it through VPN, but a large percentage of population will be effectively discouraged before using localbitcoins now because common people usually don't want to break laws. The only hope is that, we have some other platforms like Paxful or Bisq which may come into rescue at this point!

But if I look for a long term perspective, Russian government will eventually declare cryptocurrencies as illegal. At least the trend is showing this way! It seems like Russian government will ban it in a stepped-up measure.

Paxful is basically a scammer marketplace and I was really disappointed by their service.Look at Paxful's Trustpilot score and reviews and then look at Localbitcoins reviews and score on Trustpilot.Localbitcoins is way more legit than Paxful.
I've never heard about Bisq or Hodlhodl.
Anyway,I assume that Russia will ban all the P2P crypto exchanges,since the service which they offer is basically the same.The Russian government doesn't want capitals to get exported outside Russia and cryptocurrencies are an easy way to export money outside the borders.
 

LBC and paxful are pretty much same, more chance of trading with an hacked account and end up losing your money and your bank account. Banning will leads to the decrease in the revenue because people won't report their cryoto earnings and use the other ways to cash them out sooner or later.

[verita1]

It's a shame that this is happening with the Russian crypto community that loves Crypto. The authorities in that country allege that the restrictions with LocalBitcoins are due to the fact that it illegally disseminates information to the public. Perhaps LocalBitcoins needs to design its platform to adapt to the basic data protection requirements of its users.

https://decrypt.co/44902/russia-blocks-p2p-crypto-exchange-localbitcoins?amp=1

[Oshosondy]

It is not yet a problem for Russians, they can still access localbitcoins by using VPN, what is just the issue is to use a safe and a reputed VPN, the best and safe ones are all paid ones, unlike the free VPN that sells peoples information to thirdparty. Accessing localbitcoins by Russians is not a problem at all because accessing it using VPN is not blocked.

Also, localbitcoins should do their best in a way to avoid such block that can happen in any other country,  also try their possible best to get things solved out in a way Russia will unblock them.

[lobat999]

@OP, we will appreciate if you could provide us a link to your source.

[The Cryptovator]

They can't prevent citizens to use bitcoin this way. Lately, Localbitcoin needs KYC passed, so using a VPN would be risky. LocalBitcoin is a centralized peer to peer exchanges, they would block account. I think it would be better to use decentralized peer to peer exchange like LocalCryptos. They don't require KYC and funds will be under the control of you since it's a non-custodial crypto marketplace.

The only hope is that, we have some other platforms like Paxful or Bisq which may come into rescue at this point!  

I wouldn't agree to use Paxful. Some of my known people have been using Paxful, and I have seen they had faced many issues especially about scams.

[tranthidung]

Russia has big trade volume on P2P marketplaces but they are not the biggest nation and the Eastern Europe is not in top-2 biggest regions. Charts above show that.

• Charts are for total trading volume on two P2P marketplaces (not for all P2P marketplaces): LocalBitcoins and Paxful. From there
• 4 biggest regions are North America, Eastern Europe, Asia Pacific; Western Europe
• Details for Russia

I always tried to give locals my advice that they should immediately activate 2FA for their accounts and choose applications, not SMS code. OP pointed out the sad story that telecommunication companies can block SMS code from crypto exchanges. They are allowed to operate under acceptance of governments and it is understandable if they block SMS code by government request.

Newbies think SMS code is available and they don't have to do anything (app installation, ie.) but they are wrong. They can get troubles later.

I wouldn't agree to use Paxful. Some of my known people have been using Paxful, and I have seen they had faced many issues especially about scams.

It is not for newbies who don't know how to get txhash for their deposits. P2P marketplaces are not for unknowledgeable newbies.

Generally on P2P marketplaces, people have to get familiar with platform operations, rules, how to choose good trade partners (old accounts, high total traded volume, good trade feedbacks -- in amount of positive and descriptions) and disputes (how to save evidence and provide enough information for moderators). They should know how to make video record for their trades (just in case, they have to open dispute against scammer).

Moreover, most people choose P2P marketplaces with initial reason simply because of better rates than on centralized exchanges. Better rates ~ higher risks. Most of newbies get scammed with offers that are too good to be true. Experienced traders will avoid such offers.

One of key rule: "Don't release bitcoin if you have not yet received money". Bitcoin transactions are irreversible so if you release it you will lose it. It is one of warning message for each trade but newbies simply ignore and don't read it. They want superb fast trades, click click and click.

Start with small trades, and learn with scams. The fee for learning is small. I don't think it is acceptable to be scammed but the smaller stolen money the better.

[dkbit98]

Yes they banned localbitcoins and binance websites but people are using vpn and binance app.

That news didn't come as a shocker though! Russia was always an anti-crypto nation like any other communist countries and they have already declared cryptocurrency as not a legal tender long back.

It is clear you have no idea what are you talking about.
If you research a bit more you will find that russian government is using blockchain a lot and crypto is not banned in russia, they just have their own regulations that allows use of crypto but not as method of payment yet.
The adoption of Bitcoin in Russia is growing regardless of regulations and Russia encourages blockchain tech.
One more thing is that next federal elections will be held using blockchain and waves tech, so think about that:
https://twitter.com/wvsenterprise/status/1298973278636130305

As for ex-communist countries I will name just Estonia and Slovenia, most crypto adopted countries in the world.

[Charles-Tim]

@OP, we will appreciate if you could provide us a link to your source.

The thread was created today but the news has been existing since two or three days ago. You can read about it in details on cointelegraph using the link below.
https://www.google.com/amp/s/cointelegraph.com/news/major-p2p-crypto-platform-localbitcoins-is-blocked-in-russia/amp

[boyptc]

It's a shame that this is happening with the Russian crypto community that loves Crypto.

Not that shame of but their government has shown a negative flag even before this happens. But it's just that the crypto community there are persistent and don't show any signs of stopping as it's already established.

Hopefully someday that this treatment of the Russian government for crypto services(exchanges, etc.) will change.

[ampu]

In the past, they allowed people to mine cryptocurrencies but they're not allowed to trade them within Russia. This is a wise move to benefit from the crypto market.
The problem with the Russian currency is that they have a little market for liquidity and they don't want bitcoin or crypto to lower the liquidity of the Ruble.
They are doing everything they can to avoid the collapse of their national currency. Using cryptocurrencies benefits the people but not the Russian economy.

[win2408]

it is good for me to know more about russia blocks localbicoins
thank you for posting this post

[Leviathan.007]

I'm not living in Russia But according to what I know from the Russian government, I can definitely say since localbitcoins is a P2P exchange and the governments is unable to monitor the information on it the blocked it. Just like any other P2P exchange. In the other hand just like many other countries due to the power of Bitcoin, they can't officially ban bitcoin trading. So, they announced that any buying or selling bitcoin is not forbidden. However, is this case by using a VPN server people can get trapped by the VPN providers to trace their information, specially if they are using vpn for financial stuff.

[lovesmayfamilis]

The government in Russia increasingly wants to regulate cryptocurrency. After blocking localbitcoins, you should expect blocking of all known VPN services . Yesterday's news reports that unskilled investors will be able to buy $8,000 worth of cryptocurrency.
https://zycrypto.com/russias-central-bank-wants-to-limit-the-amount-of-crypto-unqualified-investors-can-buy-annually/

Laws are becoming more stringent every day in relation to bitcoin, nevertheless, Russia plans to create its own digital ruble, which, as we understand, will be very closely controlled by the government.
https://cointelegraph.com/news/bank-of-russia-issues-consultation-paper-on-digital-ruble

[stompix]

Russia has big trade volume on P2P marketplaces but they are not the biggest nation and the Eastern Europe is not in top-2 biggest regions. Charts above show that.

Actually, if we refer strictly to LocalBitcoins they are, they have the biggest volume of 678 BTC while Venezuela has only 502 BTC ,and the percentage the OP mentioned is pretty close, 678 out of 3667 is 18.4%.

Russia being one among the supportive country for cryptocurrency have stated bitcoin usage as payment is illegal

This makes zero sense whatsoever.

I'm not living in Russia But according to what I know from the Russian government, I can definitely say since localbitcoins is a P2P exchange and the governments are unable to monitor the information on it they blocked it.

They are just passing some law to make them look like they are doing something and at the same time not doing anything at all.
If they really wanted to stop people from trading there they could have done it pretty easily, infiltrate the platform, contact some of the traders there and make a deal, then when they receive the money they get all the info about who the trader is if he's dealing with a bank account. Just look at what is happening in the US:

US Homeland Security Charges LocalBitcoins Seller With Money Laundering
9 Years: LocalBitcoins Trader Sentenced in Latest Money Transmission Case
Arizona Bitcoin Trader Sentenced to 41 Months in Prison for Money Laundering
LocalBitcoins Trader Gets 21-Month Jail Sentence


And of course , the case of BurtW

If anybody thinks that dealing on LocalBitcoins makes you untraceable you need a reality wake-up call.