LocalBitcoins Quietly Removes BTC-for-Cash Trading Option

Swedish peer-to-peer crypto exchange LocalBitcoins has removed its cash-based trading service without any prior intimation to its customers.

First pointed out by a Reddit user on Sunday, the platform no longer shows “In person: Cash” option which allowed traders to take delivery of their coins in exchange of cash by personally meeting the seller.

LocalBitcoins has removed Cash trades! from r/Bitcoin

Many users of the platform also complained that it has canceled all pending cash trades.

The unannounced removal of cash trading option has created a stir in the community and many are turning their backs on the peer-to-peer platform.

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Time to start a application/site/forum to meet people who like to sell or buy #BTC and other coins face to face de way they like Instead of using #localbitcoins https://t.co/oWTdP5Sj5w

— Boris (@Borisuithetbos) June 2, 2019

LocalBitcoins is one of the widely used crypto trading platforms for trades based in jurisdictions with restrictions to buy and sell digital currencies. According to its website, the peer-to-peer exchange is offering its services in “248 countries and 7571 cities.” Last week, the exchange reported that it has facilitated $58 billion worth of Bitcoin trades across the globe.

And without any official announcement, it is still not clear whether the closure of the particular service is temporary or a permanent one.

Fight against anonymous traders?

LocalBitcoins has long been trying to get into the good books of regulators by introducing Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) and anti-money laundering (AML) rules. In April 2018, the platform made it mandatory for high volume traders to disclose their identity and halted anonymous trading.

Earlier this year, the Helsinki-based company announced that it is going to make the Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term compliant to the AML/KYC standards of the European Union.

Competitors taking advantage

Meanwhile, with the community resentment against LocalBitcoins, other peer-to-peer trading exchanges offering in-person cash option are boasting their services.

LocalEthereum, offering peer-to-peer trading options only for Ether, responded to LocalBitcoins’ move by temporarily removing transaction fee for cash-based trades.