LocalBitcoins will no longer accept transactions involving Finnish currency, according to the latest news in the crypto industry. The famous Peer-to-Peer cryptocurrency exchange based in Finland, announced this latest development early in the month, a decision which many local crypto enthusiasts believe will dent the country’s image.
Finland isn’t among the largest countries embracing digital assets in Europe. But with LocalBitcoins discontinuing use of the national fiat, many believe that this will hurt its reputation in the crypto world.
Yet, barely a month is gone, but a particular pattern is starting to form. According to CoinDance, the crypto exchange’s weekly chart has started to show the effect of the ban, with the Russian Ruble (RUB) showing growing volumes. The exodus started in June 1st, though it is still likely that the volume will drop.
Many leading companies are already seeing the pattern describing the fast plummet, although Russia’s capital is the most conspicuous. During the first week of the month alone, trades registered a record high of RUB 1,174 million in volume, before it fell to RUB 1,104 million by the end of the second week.
But the surge resumed soon after, with the volumes going back to the May 2019 highs. The fourth week of June finally recorded an incredible RUB 1,188 million in volume. The graph detailing the change effectively painted Russia as a hot market for LocalBitcoins.
For a while now, LocalBitcoins has been maintaining impressive records in South America. The exchange’s weekly volumes across Columbia, Peru, Venezuela, Chile, and Argentina have always remained high. But the announcement also had an impact in the trading volumes.
In Buenos Aries, its weekly volumes from the start of the month to mid-June reduced from $13.71 million to $10.53 million. The cash-removal directive also affected the exchange’s performance in Columbia where the volume traded reduced from May’s $9.98 billion to $7.16 billion recorded, during the first week of June. The amount has, however, stabilized at $9.2 billion.
It should be remembered that the decision to ban fiat trades wasn’t arrived at overnight. It is something which LocalBitcoins had been pondering about ever since the local financial watchdog, the Financial Supervisory Authority [FSA] was introduced.
The body came into existence in March 2019, but even with its existence, the law is expected to fully come into effect later in November 2019. The law will classify cryptos as legal assets, identified by the Finnish law. Other changes to the law include amendments on the Anti-Money Laundering laws as well as the Countering Financial Terrorism Act.