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Recently, blockchain has received much attention from the mobility-centric Internet of Things (IoT). It is deemed the key to ensuring the built-in integrity of information and security of immutability by design in the peer-to-peer network (P2P) of mobile devices. In a permissioned blockchain, the authority of the system has control over the identities of its users. Such information can allow an ill-intentioned authority to map identities with their spatiotemporal data, which undermines the location privacy of a mobile user. In this paper, we study the location privacy preservation problem in the context of permissioned blockchain-based IoT systems under three conditions. First, the authority of the blockchain holds the public and private key distribution task in the system. Second, there exists a spatiotemporal correlation between consecutive location-based transactions. Third, users communicate with each other through short-range communication technologies such that it constitutes a proof of location (PoL) on their actual locations. We show that, in a permissioned blockchain with an authority and a presence of a PoL, existing approaches cannot be applied using a plug-and-play approach to protect location privacy. In this context, we propose BlockPriv, an obfuscation technique that quantifies, both theoretically and experimentally, the relationship between privacy and utility in order to dynamically protect the privacy of sensitive locations in the permissioned blockchain.