Russia Regulator Blocks Crypto Website LocalBitcoins.net


LocalBitcoins.net, an over-the-counter trading website of local currency for bitcoins, has been blocked by Russia’s telecom regulator Roskomnadzor on July 21, 2020.

October 13, 2020 | AtoZ Markets – On Thursday, September 24, users from the Russian Federation began to complain about problems with access to the LocalBitcoins, a p2p platform for buying and selling bitcoin.

According to Roskomnadzor, the website LocalBitcoins.net was added in the unified register of prohibited resources based on the decision of the Onega City Court of the Arkhangelsk Region dated July 21, 2020.

Why Russia’s Roskomnadzor blocked LocalBitcoins website

The reason for blocking the site was the prosecutor’s claim on the inadmissibility of disseminating information about cryptocurrency quotes and transactions with them. The prosecution traditionally referred to the Federal Law “On the Central Bank of the Russian Federation” and the statement of Rosfinmonitoring and the Central Bank on the procedure for using cryptocurrencies.

Related: Bank of Russia will block overseas unregulated Forex websites

When making a decision, the court relied on the article of the Administrative Code on “violation of the procedure for working with cash and the procedure for conducting cash transactions, as well as the violation of the requirements for the use of special bank accounts.”

Mikhail Lunev, CEO of the Bitzlato P2P platform, is confident that blocking the site will not affect user behavior:

“A couple of months ago we were also blocked by Roskomnadzor. We had to move to the mirrors and urgently “fix” the site, but we did not feel the outflow of users. Clients continued to trade via the BTC banker telegram bot. This is our main product without the obligatory KYC. “

As AtoZ Markets reported, LocalBitcoins was included in the register of prohibited ones in May 2018 by the decision of the Primorsky District Court of St. Petersburg.

Earlier, the Bestchange cryptocurrency website and the NinjaTrader domain were blocked in the Russian Federation for the dissemination of prohibited information.

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