Introducing KYC and AML, stopping cash transactions, LocalBitcoins you changed

The P2P cryptocurrency trading service platform LocalBitcoins has completely stopped all physical cash transactions on its network. Several traders reported that their orders were cancelled, forcing them to switch to electronic transfer transactions.


For a long time, Bitcoin enthusiasts have long believed that LocalBitcoins is a safe haven for decentralized bitcoin transactions. But now it seems that the company is losing this advantage.

This change in LocalBitcoins is basically unnoticed, no press releases, no official news. However, just like everything in the world of cryptocurrencies, nothing is a permanent secret. A Reddit user noticed that the service was removed and a series of alternatives soon appeared:


Recently, LocalBitcoins has been attacked by the cryptocurrency community since it introduced the KYC mechanism on its platform. The so-called anti-money laundering (AML) function is believed to be a crackdown on fraud, and the authorities claim that cryptocurrencies can easily constitute fraud.

Finland and other European countries are currently open to the development of cryptocurrencies. However, KYC is a strict one-way system that essentially allows the government to monitor its citizens. In March of this year, the Finnish parliament approved a new bill for “virtual money service providers”, and the Helsinki-based exchange seems to have no choice.

The main channel of LocalBitcoins is its over-the-counter trading service, which allows parties to directly trade each other in cash. As the world quickly turns to the e-service model, icy banknotes are still one of the few truly anonymous ways of exchanging value.

But for LocalBitcoins, this choice is not correct. Infrastructure in developing countries remains flawed and requires heavy reliance on cash transactions. Ray Youssef, CEO of Paxful, a P2P trading platform, said that his competitors should now be renamed:

"LocalBitcoins are now Remote Bitcoins (remote corresponds to local, in order to show that the platform is no longer grounded). They canceled all cash options, refugees are pouring into Paxful… Cash is still king in the emerging world!"

Paxful's harvest is clearly a loss of LocalBitcoins. This is true, but Paxful users also need to do KYC, and for traders, there are fewer and fewer truly anonymous trading options.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Interpreting the Performance of 14 L1 Public Chains in Q1: Stacks Emerges as Dark Horse, Network Usage Rate Generally Decreases

After the running-in period, various public chains have entered the "internal competition" stage.


Cardano Is it Going to Zero? ADA Price Slips Amidst Crypto Market Rally – Will This Mining Protocol Go Viral?

Will Cardano's Growth in Valuation Lead to a Collapse or a Surge? Expert Predicts ADA Price in Light of Record-Breaki...


Why does the US SEC, which has clearly classified more than a dozen tokens as securities, continue to avoid addressing the status of ETH?

As an intermediary for daily transactions and investment tools, L1 tokens need clear regulation, which is not only be...


Cardano (ADA) Price Breakout: History May Repeat Itself 🚀📈

According to an analyst, Cardano's price has the potential to surpass $8 based on historical patterns. This suggests ...


🤩 The US Cryptocurrency Conundrum: Regulating in Chaos 😱

Charles Hoskinson, creator of Cardano, expressed to Cointelegraph that regulators in the US, like the SEC, have effec...


Is CoinDesk selling at a loss with a valuation of $125 million after being in business for ten years?

On the occasion of its tenth anniversary and after being held by DCG Group for eight years, CoinDesk, the cryptocurre...