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Major P2P crypto platform LocalBitcoins is blocked in Russia

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LocalBitcoins, a major peer-to-peer cryptocurrency exchange, is no longer available in Russia without using additional tools like a VPN.

LocalBitcoins.net is officially blacklisted in Russia as local telecom regulator Roskomnadzor placed the URL on a register of platforms disseminating prohibited information.

According to official data, the website was blacklisted on July 21, following an order of the Onezhsky City Court of the Arkhangelsk region.

It’s not immediately clear when exactly Roskomnadzor limited the access to LocalBitcoins’ website. Some local reports claim that LocalBitcoins users in Russia began to experience difficulties in accessing the website in late September 2020.

LocalBitcoins has not released an official statement regarding its website being blocked in Russia. The company’s executives have not immediately responded to Cointelegraph’s request to comment on the issue. This article will be updated pending any new information.

As LocalBitcoins is now blacklisted in Russia, the company risks losing one of its core markets. In June 2020, LocalBitcoins executives told Cointelegraph that Russia was the top trading volume market on the platform in April and May 2020.

Alongside handling large amounts of crypto operations coming from Russia, the Finnish crypto exchange has been accused of being a major destination for illicit funds. According to a report by CipherTrace, LocalBitcoins received over 99% of criminal funds among Finnish exchanges in the first five months of 2020. Jukka Blomberg, chief marketing officer at LocalBitcoins, subsequently claimed that darknet-related transactions on the platforum dropped 70% in 2020.

Roskomnadzor recently blacklisted the website of Binance, the world’s largest crypto exchange. Binance officially announced the news on Sept. 24, stating that the site was blacklisted due to the distribution of data related to the acquisition of digital currencies like Bitcoin (BTC). 



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New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.