This has just began on Binance and this is what will be happening on other exchanges.
We can see recently how robbers attacked bitcoin and other crypto users and this is becoming common. These are two recent ones:
Swedish Bitcoiners targeted by armed criminalsBinance Client Executives Kidnapped, Forced to Empty Crypto WalletYou can now trade bitcoin and other crypto with other local traders on Binance and you will meet at a particular place that both of you talked about.
This is just not different from KYC if you trade with bad person. Avoid such physical trading.
I will personally advice anyone who might have a taught about this not to engage with such practice. It's obviously not necessary to meet up with a trader who you personally don't know for the sack of exchanging. You will still have to carry out the transactions using your phone so if what use is this. You also might be putting you life and money to risk of been robbed off and stolen. We should be careful and not everything new should be tested because the internet is filled with lots of evil person.