What after localbitcoins.com shutting down

[logfiles]

It appears that peer-to-peer trading opportunities are decreasing. It constitutes a risk to us if a well-known P2P exchange closes. Because peer-to-peer trade is replacing centralized exchange like Binance is currently conducting significant p2p trade. There would be other exchanges opening up for peer to peer trading. However, LocalBitcoin was a realizable P2P exchange. I don't see why a peer-to-peer exchange would shut down. I'm not certain, but I'll guess it's just for a little enforcement.

Man, I don't even think what localbitcoins was offering was anything to do with p2p. Well it may have seemed like two parties were involved in direct trade, but then there was a third party which was localbitcoins

They could choose to freeze the funds any time they wanted, since the customer wallets were custodial. To be honest, they were more like Binance, especially when they made KYC verification mandatory.

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[dansus021]

The truth is that they started to die when they were forced to introduce KYC rules.
Since it was one of the reasons people traded there, they moved to another place

You can trade on Binance before without KYC, but Binance had no option than to make KYC mandatory. Yet, Binance remain as the exchange with the highest trading volume. Although, some people that are concerned about KYC left the exchange at the time. Jeremias Kangas founded Localbitcoins in mid 2012. 2022 crypto winter wasn't the first, that makes your post valid, but regardless of what happened, it is still about the survival of the fittest, but not necessarily about KYC as well if other things has been in place. Although, I am not disputing the fact that KYC could have been the reason for the start of Localbitcoins collapse.

Yes, I do agree I know LocalBitcoin when the price was still hundred dollars, I know their strong this is not their first crypto winter  But it is very sad when saw news like this

On the other hand back a couple of years ago there is a bunch of Centralized exchanges who don't do KYC but now almost all need KYC. I know that some people hate this but they don't pretty much have a choice.

and also bybit or binance offer P2P service but still to use it you need KYC first  . I think like it or not when the platform gets bigger and get more user the government will approach them and talk about "Regulation or I gonna shut down your business" Tornado Cash is one of the example even tho is not an exchange

[bbc.reporter]

Blaming the crypto winter.... great job!

The truth is that they started to die when they were forced to introduce KYC rules.
Since it was one of the reasons people traded there, they moved to another place
The same goes for localcrypto and a regulatory development that can take place when your company grow up.

It's called the Darwin's theory. Only the best survives  

Agreed. Also, there are other peer to peer marketplaces with more traders that began offering better conversion prices than Locabitcoins in Paxful, Binance and Kucoin. I have only learned about Binance and Kucoin peer to peer marketplaces last year. I was shocked that they have become very popular.

[Despairo]

I hope no one will use the platform mentioned by @OP because it's a custodial P2P platform similar like localbitcoins where they will ask you to submit KYC.

Verification of identity

To guarantee coinbaazar stays a protected platform for the entirety of our users and for us to agree with obligatory legitimate commitments which we are liable to, we may expect you to verify your identity to get to the services we offer. Identity verification might be required when you create offers/advertisements, pass certain transaction volume limits, during disputes or disputed trades, fraud investigations, and to guarantee account ownership. As a feature of our ID verification we expect you to give us your complete name just as reports and photos that confirm your personality (for example valid passport).

In specific circumstances (for example because of the compliance, regulatory or legal requisites) we may require upgraded identity confirmations. This may incorporate necessities to check subtleties or wellsprings of assets in regards to funds you have made or gotten during trades on just as bitcoin trades that you have sent or gotten from your account.

Agreed. Also, there are other peer to peer marketplaces with more traders that began offering better conversion prices than Locabitcoins in Paxful, Binance and Kucoin. I have only learned about Binance and Kucoin peer to peer marketplaces last year. I was shocked that they have become very popular.

Both Binance and Kucoin are become very popular because they're centralized exchange and have mandatory KYC rule, so everyone already know if they will get asked to provide KYC at the worst case. While localbitcoins, they're start from zero KYC P2P platform, but they now require KYC and the clients are not happy because of this rule.

Paxful is also KYC P2P platform, they didn't disappointed their clients.

[Charles-Tim]

Both Binance and Kucoin are become very popular because they're centralized exchange and have mandatory KYC rule, so everyone already know if they will get asked to provide KYC at the worst case. While localbitcoins, they're start from zero KYC P2P platform, but they now require KYC and the clients are not happy because of this rule.

Binance started as a no KYC exchange, it was a year or two years ago that Binance made KYC mandatory. You can still use Kucoin with just your email and password, though it is a centralized exchange and any Kucoin user can be force to provide KYC.

Paxful is also KYC P2P platform, they didn't disappointed their clients.

Paxful is also a centralized exchange with KYC mandatory.

[pixie85]

After 10 years, I wouldn't be surprised if the man decided that he had enough money to end the whole thing and maybe devote himself to some new challenges. Some are surprised by this, as if a person has committed to providing a service for life, and how many people have been active on this forum for 10 or more years - or how many will be there in 10 years?

Especially with all the regulatory uncertainties. These days you have to watch the regulators all the time. One day they are ok with what you're doing the other day they attack you, like the SEC did with staking in the US.

It's not the crypto system that is broken and uncertain, it's the politics and the corrupt financial system that is making crypto volatile. I wouldn't want to run a crypto company if they could raid my house at any time claiming my site accepted coins from a hack or I don't have a money transmitting license or something else.

[buwaytress]

Blaming the crypto winter.... great job!

The truth is that they started to die when they were forced to introduce KYC rules.
Since it was one of the reasons people traded there, they moved to another place
The same goes for localcrypto and a regulatory development that can take place when your company grow up.

It's called the Darwin's theory. Only the best survives  

This, guys. They blamed the crypto winter, economic outlook, etc., and yes, there's a truth to it. But the winter did not strike the first blow, it only slammed in the final nail.

Before they enforced strict KYC (they actually always had it, but it was either optional or very minimal, IIRC a phone number was enough to get by for most people), I would get trade offers almost as soon as I put mine live. Selling was over in minutes (literally, because of my location and mode of buying).

It was after KYC + the removal of face-to-face that they lost their niche. I took most of my trades off-site, so did most traders I knew. LBC simply became an additional listing site.

Survival of the fittest eh?

[o_e_l_e_o]

The truth is that they started to die when they were forced to introduce KYC rules.

This. LBC was a shadow of its former self. Anyone who actually cared about privacy or security left LBC years ago. I know I did. They were little more than a CEX using "P2P" as a buzzword for advertising reasons.

You can trade on Binance before without KYC, but Binance had no option than to make KYC mandatory.

This is different. If you want to use a CEX to trade fiat, then you must complete KYC. If you want to use a DEX to trade fiat, then there is absolutely no reason to choose one which mandates KYC.

It appears that peer-to-peer trading opportunities are decreasing. It constitutes a risk to us if a well-known P2P exchange closes.

I don't have any concerns about LBC closing. It was peer to peer in name only, and completely centralized in practice. If even a tiny proportion of its remaining users transition to a real peer to peer platform like Bisq or AgoraDesk (like many did when LBC first introduced KYC years ago), then that will be a net positive for the peer to peer marketplace.

[Findingnemo]

I didn't see that coming even a few days ago I completed a trade there.

Now it is going to be the happy days for the many scammers out there in Paxful platform because the trade limit of paxful is high even with email verification compared to LBC so scammers can simply throwaway their account once they scammed someone and starts with new email.

Bisq is completely decentralized p2p but I never saw any trade was created there for my fiat currency.

[dollarday]

Localbitcoins bought me into contact with many good traders in the earlier days of bitcoin.It was a safe way to buy and sell before all of the exchanges. It will be missed, although we have used it much less in the past few years.

[o_e_l_e_o]

Bisq is completely decentralized p2p but I never saw any trade was created there for my fiat currency.

What is your local currency, if you don't mind me asking? Is it supported and there is just no volume, or is it not supported at all? If it's a lack of volume, then you should feel free to create your own offers! Every market starts somewhere, and you might be able to earn yourself a couple of percentage points over the market rate since you are the only maker.

If it's not supported then you could open an issue on their GitHub (if there isn't one already) about getting it listed. Alternatively, can you swap your local currency to USD, EUR, or something else, and then trade with them instead?

With the closure of LocalCryptos and now LBC, there could well be a higher demand for Bisq to start supporting other currencies. People aren't going to want to move to a new exchange which might also close down in a few months, whereas by moving to Bisq, there is very little chance of that happening due to its decentralized nature.

[WhyFhy]

I stopped using them after they kept all my fork funds in 2017.
They pretended to be accommodating but I never saw my fork money.

[Findingnemo]

Bisq is completely decentralized p2p but I never saw any trade was created there for my fiat currency.

What is your local currency, if you don't mind me asking? Is it supported and there is just no volume, or is it not supported at all? If it's a lack of volume, then you should feel free to create your own offers! Every market starts somewhere, and you might be able to earn yourself a couple of percentage points over the market rate since you are the only maker.

If it's not supported then you could open an issue on their GitHub (if there isn't one already) about getting it listed. Alternatively, can you swap your local currency to USD, EUR, or something else, and then trade with them instead?

With the closure of LocalCryptos and now LBC, there could well be a higher demand for Bisq to start supporting other currencies. People aren't going to want to move to a new exchange which might also close down in a few months, whereas by moving to Bisq, there is very little chance of that happening due to its decentralized nature.

For privacy reason I can't expose my nativity but its supported and I can list the offer there if I want and I will give it a try in the next week and let's see with the suspension of trading from LBC can bring p2p traders to Bisq.

I have been contacted by few of my clients who I am regularly trading via LBC for years and I am yet to reply which platform I am going to choose and their reply is Paxful where liquidity for my fiat is high but many new accounts with attractive prices like 10 to 15% over market price is listed there and from my assumption they can bring issues sooner or later cause we have chance of receiving funds from hacked bank account so anyone switching to Paxful beware of this issue and pick trader with long trading history and high positive feedbacks.

[o_e_l_e_o]

so anyone switching to Paxful beware of this issue and pick trader with long trading history and high positive feedbacks.

Paxful is a poor replacement for LBC. I've never used them, but my understanding is their KYC requirements are even more invasive than those of LBC, and they will regularly lock and freeze accounts and coins while demanding even more KYC info. And as I mentioned above, if regulatory pressure is enough to shut down a centralized not-really-P2P platform like LBC, then it's enough to shut down a second centralized not-really-P2P platform like Paxful, which means you would be back at square one again looking for a new platform.

I don't see why people wouldn't just go for the best option out there (Bisq), which is immune to being regulated out of existence given that it is software which is run locally and not a centralized entity.

[LeGaulois]

The marketplaces will follow the same path the centralized exchanges followed.

Both will have the same laws to follow. There is no reason a CEX has to be strict with KYC-KYT-EDD and a marketplace doesn't have to be.
Otherwise, CEXs wouldn't exist, and companies would make a marketplace instead, to be less bothered.

And don'y worry. If there are still some marketplaces without ID verification, they will soon or later join the group.
Including HodlHodl or LocalMonero... It's just a matter of time, trust me.

They won't all die because there are always people who have no problem with the KYC but for sure the DEXs will become the only way to trade without to be bothered.


If you really want bitcoining, you have to use bitcoinized tools 

[BenCodie]

If you want to use a P2P service that operates on Bitcoin, then support the bisq ecosystem. If you don't want to use bisq, you really do not have many options for P2P trading other than platforms that cost you your data and/or privacy. The best solution for P2P trading after Bitcoin are ones that are based on Monero. There are one or two with the trusted "local" prefix around. While there is a drought for BTC P2P solutions for the moment, I predict a new revolution for private and unstoppable P2P Bitcoin trading will come soon now that such a big market has just opened following Local-bitcoin's closure. It is possible that due to over-regulation of this company, the devs here might even be re-structuring for this very with better legal foundation. That would make sense, but that is only speculation.

[LTU_btc]

I stopped using them after they kept all my fork funds in 2017.
They pretended to be accommodating but I never saw my fork money.

From what I read, they were supposed to give compensations in BTC, instead of giving Bitcoin Cash. So, they didn't made it? It's not about just LocalBitcoins, but there is much more centralised platforms which followed their path and didn't gave BCH. It's another examplewhy keeping your coins there isn't best idea in cases like this. Not your keys - not your coins.

[Findingnemo]

I don't see why people wouldn't just go for the best option out there (Bisq), which is immune to being regulated out of existence given that it is software which is run locally and not a centralized entity.

I have been checking Bisq regularly and still no offers, let's see if really people are moving towards real p2p which is decentralized. Paxful seems a temporary replacement cause the only trade limit is 1000$ for no address verified accounts, reading about their customer support is poor as many said so if anyone really moving to beware of scammers and read the terms of their trade before initiating the trade.

About the platform shared by OP which I never heard about, has anyone really used it and if yes please share how was your experience.

[o_e_l_e_o]

About the platform shared by OP which I never heard about, has anyone really used it and if yes please share how was your experience.

You can see from OP's post history that he heavily shills that site. He is most likely affiliated with it.

I have not used it, and I would recommend avoiding it. It requires that you deposit your coins to a wallet that they control, so is completely centralized and your coins are not yours. Their Terms of Service say they require full KYC, and reserve the right to freeze your account and your funds while they demand "upgraded" KYC, for any reason. And of course their Privacy Policy gives them the right to share all your data with anyone they want.

So pretty much all the worst parts of a centralized exchange.

[albon]

So today we have a news that localbitcoins.com is shutting down

Now people are in dilemma that how they can continue their trading, as localbitcoins is one of the exchange which set a benchmark in crypto space,

People are really not in a dilemma as you see it because they will transfer their assets from LocalBitcoins to any of the other exchange platforms. Yes, LocalBitcoins was one of the platforms that lived a long time to provide P2P services, but the matter is not catastrophic because there are many other alternatives that are characterized by safety, reliability, reasonable fees, and privacy, and this is often missing on centralized exchanges, for me, I recommend Binance P2P and Bisq in the first place. Also, the names of the BITKAN and PAXFUL platforms top the headlines of most blogs as being good alternatives to LocalBitcoins; although I have never used them, I found them in search engines, so everyone who leaves Localbitcoins should do his own research and know the appropriate platform for him in terms of features, security, ease of use, and in terms of KYC procedures, and he must never deposit his assets in a P2P platform that he does not know it before.