I have been selling at localbitcoins for about a month now with sell volume of slightly below 0.1 btc. It did not require id verification before. Suddenly, when I try to create a new advertisement, it shows below:
"To create advertisements, you have to complete identity verification with LocalBitcoins.com."
Are we reqd to compulsorily complete id verification to sell on localbitcoins after a point?
I can't find the exact threshold listed on their FAQ, but apparently that's the case. It's frustrating because even if you verify ID with Localbitcoins, you are still expected to verify ID with buyers/sellers you engage with.
LBC has been around for years and it's not like they're selling your identity to anyone or whatsoever; they just needed to do that in order to maintain their business.
I'm not so worried about Localbitcoins selling my ID documents. I
am worried about their database being hacked, potentially compromising many thousands of peoples' identities. After the massive Equifax breach last year, I am very paranoid about who gets my data. Localbitcoins may be subject to data protection laws, but I doubt the penalties are stiff enough to ensure that your data stays safe. In fact, that's the main reason why I have lowered my exposure to centralized exchanges.