No more cash for crypto. Peer-to-peer trading platform LocalBitcoins has apparently eliminated in-person cash trades for Bitcoin, an option that allows two parties to meet in person to exchange BTC for fiat.
A LocalBitcoins user posting on Reddit noted the removal of the option. Users on Twitter are also reporting the removal of in-person cash trades.
https://twitter.com/rusilsarkar/status/1135121502557298688
The company has yet to make an official announcement but the move may be another step toward reducing anonymity on the platform. Domiciled in Finland, LocalBitcoins is under the supervision of the country’s Financial Supervisory Authority.
In March, the company announced the recent passage of anti-money laundering regulations under the Virtual Currency Service Providers Act. The new legislation will come into full effect at the beginning of November 2019 and will create a legal status for cryptocurrencies.
After deleting all local cash offers for customers, LocalBitcoins has users wondering how “local” transactions will be.
LocalBitcoins is now Remote Bitcoins. They took down all their cash offers and the refugees are flooding to @paxful VIP support for all Cash vendors! We won’t let you down. Cash is still king in the emerging world!
— Ray Youssef (@raypaxful) June 1, 2019
Competitors are wooing LocalBitcoins customers who are still hoping to make in-person crypto trades. LocalEthereum announced that it is removing its fee on cash trading.
“In response, we’ve reduced the trading fee on cash-in-person exchanges to 0%. From today until July 1st, you can buy or sell ETH with cash using LocalEthereum for free.
Meeting in person is one of the oldest ways to exchange between crypto and fiat, and it remains one of the safest. As long as you follow simple guidelines, it’s incredibly rare for anything to go wrong. This is because cash, like ETH and Bitcoin, is irreversible.”
In a separate announcement from Bitrefill, the company says its integration with LocalBitcoins accounts ended on June 3rd. The platform allows people to purchase gift cards or mobile refills from more than 1,650 businesses in 170 countries by using Bitcoin and other leading cryptocurrencies.
“Bitrefill and LocalBitcoins made it easy for users to shop at Bitrefill.com by paying directly from their LocalBitcoins wallet, without having to pay network fees or wait for confirmations. LocalBitcoins announced that these merchant invoice features will be disabled for everyone on the 1st of June, 2019.”
Operating in 248 countries and 7,571 cities, LocalBitcoins has been powering trades for Bitcoin enthusiasts since 2012. It moved a total of $51.3 million in Bitcoin for the week ending June 1, 2019, according to data compiled by Coin Dance.
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