traders say they are still waiting to regain access to their tokens two weeks after peer-to-peer cryptocurrency exchange LocalBitcoins quietly suspended their accounts. Account-holders say they have been severely inconvenienced by the move, which has brought their trading operations to a halt.
LocalBitcoins is a Finland-based platform that allows buyers and sellers to trade Bitcoin directly. It incorporates escrow for security and is licensed by the Finnish regulator, the Finnish Financial Supervisory Authority.
The platform is accessible in over 248 countries and generates annual revenues of USD 31 million. According to data from Owler, the firm has 67 employees.
In June 2019, the exchange tightened its compliance requirements, removing its “in-cash” person option. But it appears that it is now following up with alacrity, suspending the accounts of many of its long-standing customers – sometimes, without prior warning.
Customers in many countries in Africa say they have been affected, predominantly those in Nigeria and Uganda.
Account-holders in some parts of Asia have been affected, too, including many in Afghanistan and Pakistan, as well as some in the Middle East.
Cryptonews.com also understands that some traders in the United Kingdom believe that their accounts have also been suspended.
Traders say they have been asked to withdraw their bitcoin holdings and delete their accounts if they cannot wait for activation. However, many say that they have been unable to take actions like these as their accounts had already been suspended – leaving thousands of dollars’ worth of bitcoin locked away.