[2019-06-04]LocalBitcoins Confirms Removal of Local Cash Trades

[Vladdirescu87]

Global peer-to-peer (P2P) crypto exchange LocalBitcoins has officially confirmed the removal of trading in local fiat currencies, the firm announced in a tweet on June 4.

As previously reported, the Finland-based exchange silently removed cash trading on June 1, which immediately caused some outrage in crypto community.

In the official statement, LocalBitcoins noted that its liabilities are determined by the Act on Detecting and Preventing Money Laundering and Terrorist Financing, which requires the exchange to follow certain sanctions.

https://cointelegraph.com/news/localbitcoins-confirms-removal-of-local-cash-trades

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[DooMAD]

It's a shame, but hopefully some new entrepreneurs spot the potential for this new gap in the market.  We ideally need some sort of peer-to-peer matchmaker software.  Would be more resistant to regulatory shutdown that way.  It wouldn't surprise me if such a thing already existed.

[squatter]

In the official statement, LocalBitcoins noted that its liabilities are determined by the Act on Detecting and Preventing Money Laundering and Terrorist Financing, which requires the exchange to follow certain sanctions.

Maybe it's time to leave Finland? That's usually what one would do instead of applying draconian Finnish laws to every jurisdiction you serve. What are these guys thinking? Between this and the ramped up KYC procedures, LocalBitcoins is dead to me now.

[gentlemand]

Maybe it's time to leave Finland? That's usually what one would do instead of applying draconian Finnish laws to every jurisdiction you serve. What are these guys thinking? Between this and the ramped up KYC procedures, LocalBitcoins is dead to me now.

Perhaps they like lounging at home rather than traipsing to some other jurisdiction? They must be rolling in it already.

They'll still do well positioning themselves in countries with crappy or non existent exchanges. The writing is on the wall for anywhere with a custodial element to it. It's just not a goer without suckling on The Man's phallus.

[Harlot]

Is this another news? From the news I heard they'll be only removing in-person cash trades whoch required an actual meetup for exchanging of currencies. Is the cash trades being referred in the link provided the same as the in-person cash trades I am referring too? Because if they will also remove bank transfers that will totally suck. I don't even think removing them from the options would stop the buyers and sellers from transacting outside LocalBitcoins.

[akamit]

It's a shame, but hopefully some new entrepreneurs spot the potential for this new gap in the market.  We ideally need some sort of peer-to-peer matchmaker software.  Would be more resistant to regulatory shutdown that way.  It wouldn't surprise me if such a thing already existed.

I don't think any new entrepreneurs will fill the gap, as the top one is in a process to protect their ass, maybe more will follow.
If a new one comes into life then I afraid they will get shut down by regulators or will follow the same rules even they don't want to. I believe LBC didn't want to remove local cash trades.

[pixie85]

In the official statement, LocalBitcoins noted that its liabilities are determined by the Act on Detecting and Preventing Money Laundering and Terrorist Financing, which requires the exchange to follow certain sanctions.

Maybe it's time to leave Finland? That's usually what one would do instead of applying draconian Finnish laws to every jurisdiction you serve. What are these guys thinking? Between this and the ramped up KYC procedures, LocalBitcoins is dead to me now.

If you saw the movie about TPB you know how "nice" the law in Finland is. It's nothing new that they want to stop all freedom and innovation.

Their revenue is going to take a big hit. It's going to turn into a platform through which people will be finding other people who want to exchange bitcoins for fiat and agree on small trades just to meet in person and do the rest in cash.