Post
Topic
Board Bitcoin Discussion
Re: Rip localbitcoins.com
by
BitDane
on 06/05/2023, 23:39:48 UTC

I have known localbitcoins for years now but I never experienced using it to buy or sell Bitcoin.  Even though I did not experience their service, it is still a bit sad to see a decade long service to shutdown.  I do not think it is because they are losing users, probably it is deeper than that why localBitcoin decided to shutdown. 


Localbitcoins lost their trading volume because they used to be a p2p BTC exchange that later began to ask for KYC from their customers, their users were people who wanted to trade only p2p, so obviously trading volume was going to drop, as their customers moved to other BTC p2p exchanges.


difficult to defend if you have to do KYC, especially just for P2p because most people who do p2p are people who avoid KYC
Even though there are many new features that support it, there is no guarantee that people will continue to transact there, especially since this is only a local exchange

You cannot use Binance P2P if you are not KYC verified same goes with other centralized exchange.  With the regulation and flow of the government action, I think KYC is inevitable, there is also a huge possibilities that these decentralized exchanges will be pressured by the government to eithr implement KYC or just shutdown.