The LocalBitcoins exchange platform will cease trading activities in 13 US states.
Only 10 states will continue to benefit from the exchange’s services.
LocalBitcoins did not give a direct reason for this suspension of trading.
The international BTC exchange , LocalBitcoins, recently said it will suspend trading for more than a dozen U.S. states from January 26.
According to the announcement, only ten states will be able to continue to use the services of LocalBitcoins. These states include Illinois, Kansas, Montana, New Hampshire, New Jersey, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin.
LocalBitcoins enforces new restrictions
LocalBitcoins.com will cease trading in all remaining states, except the aforementioned ten, by spring 2021. Exchange representatives added that operations will be suspended for the next two weeks for Florida on Connecticut, Utah, Arkansas, Nevada, Nebraska, Mississippi, Iowa, District of Columbia, North Dakota, Minnesota, Kentucky, and Vermont.
LocalBitcoins will close accounts two weeks after the January 26 deadline and grant customers a final withdrawal after that time.
The news was first posted on Reddit with the image copied from what appeared to be a post from LocalBitcoins. That said, the post was deleted soon after. BeInCrypto asked LocalBitcoins to comment on the validity of the message and received a response indicating that the information was indeed true.
According to Coin Dance , LocalBitcoins currently has a weekly trading volume of around $ 4.8 million in the United States.
The factors linked to this suspension
The reason for the announcement was not specified, Localbitcoins having simply stated: “It has been a pleasure to serve you and we apologize for the inconvenience”.
That said, the announcement follows recent news about the decision by the United States Securities and Exchange Commission (SEC) to accuse Ripple (XRP) of managing and selling unregistered securities. The ongoing case could put cryptocurrency exchanges at risk, and many have decided to remove XRP from their listing to avoid possible repercussions from the SEC.