Centralized or decentralized cryptocurrency trading platforms are the vital nerve for traders to provide them with the possibility of converting cash into cryptocurrencies or vice versa.

LocalBitcoins, a global platform based in Finland with peer-to-peer trading, is facing a major problem.

The problem is not related to the security aspect, but rather to a bigger problem.

The problem of bitcoin trading volume, as the trading volume has fallen very dramatically on the LocalBitcoins platform.

The number of bitcoins traded on the platform fell to a record level, and last week (February 22) the trading volume recorded a decrease not recorded in 7 years.

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At the end of February, LocalBitcoins had traded 3,144 bitcoins, the lowest weekly amount since May 2013.

According to the site Queen Dance The percentage decrease was estimated at 75% from the same period last year.

Viusca Xavier Felgueira, Content and Communications Representative at LocalBitcoins to source as follows:

Some of the differences in volume are due to the level of activity of the Bitcoin market itself.

But our service already predicted that the regulatory changes that occurred during 2019 would have an impact on the platform.

Added:

Bitcoin dollar volume is similar to what it was in early 2017

LocalBitcoins saw around 13,000 bitcoins traded on a weekly basis in February 2019.

The largest ever LocalBitcoins traded, estimated at 40,000 bitcoins in one week, occurred once in 2015.

Regarding the new drop in trading volume on the LocalBitcoins platform and its lowest level in 7 years, it is due, according to some reports, to the sudden suspension of user accounts, which we previously mentioned on the Bitcoin Arab website:

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LocalBitcoins platform closes accounts of users from different countries, including Arab countries!

Reports indicated that the suspensions were the result of tough new EU anti-money laundering regulations that came into effect last January.

As the new legal regulations in force in the European Union since the beginning of this year require trading platforms and crypto wallets to know customers and disclose their identity.

LocalBitcoins said it complied with the new legislation and verified users’ identities.

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According to the interpretations of the followers, it was the changes in legal regulations that made the trading volume on the LocalBitcoins platform drop to a sharp level in the past month.

Others attributed the trading volume to a decline in general and not only to the LocalBitcoins platform, as they warned of Bitcoin trading volume and decline since last April.

When the trading volume is small, there are fluctuations and sudden movements in prices.

Despite all of the above, there are still some notable events coming in 2020 that could contribute to the return of the Bitcoin waters, including the Bitcoin reward split event:

The Bitcoin split… an introduction and its importance to the crypto industry

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