P2P crypto exchange LocalBitcoins has reportedly removed all anonymous physical cash trading on its network. The altcoin news today comes from several crypto traders after they reported having their standing orders canceled and saying there were forced to revert to electronic transfer options.
Crypto enthusiasts have considered the P2P crypto exchange as a haven for decentralized bitcoin trading but it seems like the company is losing its edge. The development has flown under the radar recently with no press releases officially from the company. However, one Reddit user noticed the removal and posted on the platform.
LocalBitcoins has been under fire for a long time from the crypto community after introducing Know Your Customer (KYC) features on the platform. The new AML features were supposed to take out the fraud which the authorities claimed that it is very easy to do with cryptocurrency.
LocalBitcoins seems to have little choice in the issue with the approved proposal to the Finnish Parliament for a new act on ‘’Virtual Currency Service Providers’’ back in March. Crypto exchanges are still under scrutiny after multiple platforms were the target of KYC controversies. Many EU countries are open-minded towards cryptocurrencies but KYC is a strict one-way system which allows the governments to spy on citizens.
As reported in the latest cryptocurrency news, LocalBitcoins’ drawcards was an over-the-counter service which helped the parties buy and sell directly in person with each other. However, the world is quickly turning to electronic models only and physical cash remains the only anonymous way to exchange value.
The developing countries have the very underdeveloped infrastructure and rely heavily on cash exchange. The CEO of Paxful Ray Youssef noticed that there is a significant jump in customer registrations and he also declared that LocalBitcoins should now change its name.
Paxful is still KYC stuck leaving the traders with fewer options for an anonymous trade. Cash trading as well comes with its own set of risks but it is still anonymous. Traders now have to consider safety issues when they would conduct a meeting in person. There is also no escrow service so the buyers have to check up with the sellers for up to 20 minutes before receiving confirmation of the transfer.
Up to this hour, there still hasn’t been any comment by LocalBitcoins yet.
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