Crypto P2P platform struggles to take off in Middle East. Arcana Research has publised information stating that despite demand for peer-to-peer crypto trading platforms in the middle east, regulations and lack of infrastructure is slowing down adoption.
According to an October report from the firm, peer-to-peer crypto trading volume, or P2P, across the Middle East and Northern Africa is roughly 15% what it was in late 2017 on major platforms LocalBitcoins and Paxful or roughly $682,000 a week.
The reports states that “In general, there are several centralized exchanges providing services in the more developed Arab states. However, other countries in the region do not have this exchange infrastructure, and also lack financial and political stability, but [have] not seen any notable crypto adoption on the P2P.”
There is demand for P2P services in Middle Eastern countries facing inflation as it enables people to get money out of the country or convert to crypto. Huge inflation in the Lebanese pound was reported in 2020. Although Iran has become a hotspot for crypto miners because of the low cost of energy, after the United States reimposed sanctions in 2018, its currency has also been devastated by crippling hyperinflation.
Despite this, P2P exchanges in both Lebanon and Iran are struggling to establish a foothold due to “poor Internet infrastructure and political regimes being negative towards Bitcoin.” Instead, Arcane researchers found that “less sophisticated” Bitcoin (BTC) P2P trading methods have grown in the region during the same period, spurred by messaging apps like WhatsApp.
The study also showed that undocumented immigrants living in western countries are turning to crypto to send home funds using gift cards in conjunction with P2P trading platforms as local laws make it more difficult to send crypto.
[image: Rashid Khreiss]