They started as a no KYC option and users were happy to pay 1% for that (on top of vendors rate). Forced KYC is what ruined them. Why pay such high fees when you can go on Binance and pay less?
Can someone please answer me this? I run a P2P crypto exchange built on the Localbitcoins model. We do KYC because its a way to prevent scammers from making multiple accounts.
How do you stop scamming without KYC? How can users be safe without KYC?
There are other ways to connect one account to the other, one of those would be the address they're sending from. Another one is your website can check for cookies or whatever and see if user has been previously registered and so on. Talk to a web developer.