LocalBitcoins Platform Removes Cash Trades And Works With Regulators – The Business Is No Longer Private
Privacy is a key word in the crypto space, and this is an essential element that defines the very nature of cryptocurrencies. People don’t want their identity revealed and neither their private information.
A recent unfortunate event took place in the crypto space and managed to destroy the whole concept behind the LocalBitcoins platform.
LocalBitcoins is a BTC firm that is based in Helsinki, Finland, and the startup’s services facilitate over the counter trading of the local currency in the country for BTC.
Users were able to post ads on the website, and they could state the exchange rated and payment methods for buying or selling BTC.
LocalBitcoins shuts down local cash trades
On Reddit, users are discussing a terrible thing that happened to LocalBitcoins and affected a lot of people. The platform removed the cash trades.
First of all, LocalBitcoins business is now no longer private because it has been ruined by regulators.
Now, the platform is sharing the complete info that users are providing and this includes chat logs and bank data as well.
Users, no longer recommending LocalBitcoins
People are disappointed and the comments in the thread on Reddit say it all. Someone posted, “It’s time to no longer recommend localbitcoins, EVER.”
One other Redditor was also shocked and said: “Whoa, did they announce this somewhere? I logged in and found my “in person” sell offers were all deleted, and the “add new” prompt now has no “local” options, only “online” ones. Kind of defeats the purpose of “local” in the name…?”
The problem is that they didn’t even announce this and users were not prepared for such a hit.
A commenter posted: “Localbitcoins used to be fine to use but nowadays the amount of requirements and verifications to comply with money launder laws made the experience pretty trashy. I was banned two times before I completely stopped using their services. Besides, Privacy and TOS change every month.”
Redittors are discussing what happened in a new thread on Reddit and they are debating various other options that are available in the space.
There are at least three viable alternatives to LocalBitcoins that we recommend.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.