Will increasing banking restrictions lead to a rise in P2P transactions?

[Plaguedeath]

Problem is you don't know what kind of laundry the p2p provider is involved in. If they also work for Hamas.

I don't understand why you treat Bitcoin as non fungible? Bitcoin is a currency, currency is fungible, every satoshi is same, similar to every dollar is same. As long as you didn't interact with the "criminals", you're not supporting them. If you get asked to provide the source, you can just pointed out you're using P2P platform, that's it.

If you afraid you get the money from criminals, probably you need to find out people who had used your dollars.

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[Kelward]

Most of people will choose convenience than privacy and if it is not mandatory, no other choices available, they will choose things that can bring convenience, not privacy. I don't expect banking restrictions will increase P2P transactions too much.

It is a fact that people will rather go for convenient transactions on centralized exchanges where they'll have to provide KYC, instead of p2p transactions where their privacy is kept from centralized authorities like their governments. So bank restrictions will only make the exchanges services to become more sought after and they'll become richer because they minimize crypto transaction scams, which is on the increase. I personally don't mind doing p2p transactions, but you'll only feel comfortable when it's with a trusted person, it's very risky to do p2p transactions with a person that is not familiar with you, because if you send your Bitcoin, then the person doesn't send fiat into your bank account, there's really no way of tracking the owner of the wallet address.

[Adbitco]

This post made me reflect back to how we were facing so much challenges within our country even till now it hasn't been resolved, we aren't permitted to buy cryptocurrency with our Debit card from bank hence we all switched to using p2p till date and like seriously that has been the best way to buy bitcoin and not by person to person. This is more risky to say because you won't know what the person may holds for you, instead p2p is more better just trade with a verified users and if you aren't trusting the person you can go bit by bit to executes the total bitcoin you wanna buy provided no cryptocurrency words will be associated while doing your bank transfer to either buyer or sell.

[KiaKia]

I keep reading about bank accounts in the UK, US and EU being frozen due to crypto associations. This is concerning me, and I am reluctant now to use any exchanges to purchase Bitcoin. However, I am happy to purchase crypto via P2P transactions. These can be either cash payments in a face-to-face meeting, or by bank transfer to a trusted person's personal account. Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Now, what about crypto-to-crypto exchanges? Will government oversight and intervention restrict those. This could lead to decentralised swop services, and surely this is contrary to the wishes of the banking puppet masters?

I do have people, family members in the UK and US that are into crypto investment, they have their bank account up and running but they have never get their bank account blocked because they interact with a crypto exchange or crypto in general.

Maybe those who ended in such mess make some mistakes or something? But still I understand what you are trying to say, I will rather rely on P2P platforms too, but it's no more a new thing.

P2P platforms have been around for years now, but it depends on if someone really want to start using them or not, many people still don't have a reason to start using P2P till today, but for those who need it, they will surely find it if they want.

What I want to see happen, is that decentralised exchanges must practice decentralisation and stay on this forever, the SEC are going after Uniswap now, and I am not surprised, because Uniswap used to claim that its decentralised until some time ago where they start operating in a centralized way.

[PrivacyG]

Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Yes.  And no.

Applying restrictions to Cryptocurrencies is a smart move.  It does two things.  It keeps the sheep under control while the rest of the people who contemplate avoiding the rules will have an instilled fear of avoiding them.

Before, it was easier.  Since there were no regulations, you never had a fear such as the Government finding out about you avoiding them.  Now, things are different.  The people who will continue to avoid the rules will be an amount negligible enough for the Government not to care.  What is important is not losing control over the mass.

Now for your situation, things are simple.  Banks freeze accounts for fiddling with Cryptocurrencies?  Just start moving Cryptocurrency with out the need for Banks, which is how Cryptocurrency was supposed to be used anyway.

But the situation is much more complicated in other cases.  For example.  Cash restrictions are increasing every few years in Europe.  Considering the increased limits on Cash Transactions in the past decade, I can safely assume the limit will be either so low it will become a HUGE burden to pay with Cash, which is pretty much obliging us all to use Card instead, or the limit will simply become inexistent for the same reasons they are now increasing limits.  Fraud, Money Laundering et cetera, which the politicians mostly do, and not the regular citizens like us.

That is where the real struggle begins.  How do you sell your Cryptocurrency earnings while avoiding Banks if Cash Transactions are limited to 1,000 Euros and Banks freeze Cryptocurrency related accounts?  If you have 10,000 Euros in your Bitcoin Wallet and decide to sell it all, do you meet 10 separate people to exchange it all up to the limit?  Do you meet one single guy to silently exchange over the limits?  What do you do?

They are smart by doing this all and they know it slowly becomes a burden and a very uncomfortable fence for all of us, forcing us to both use Banks and to stop using Cryptocurrency altogether.

I do not see many people continuing to risk once more restrictions are applied.  Even meeting a single person face to face to exchange small amounts of Bitcoin is risky enough, and from all people I know, which is a few hundred, I doubt I could find even 10 who would take the risk.

[Pmalek]

If you live in a country where you can get you bank account frozen or closed because of an association with bitcoin or crypto, then make sure you don't give them a reason to make you bankless. P2P transactions are fine. It's just one person sending to another one for any reason. Come up with a story why you are receiving/sending the money and agree with the other party about what to write as reason for payment.

Even better, try to create or join a network of buyers and sellers in your area who meet face to face. That way you can get the job done immediately.

There is a different problem. We are moving towards a cashless world. Many countries are already cashless and function entirely on debit/credit card payments and mobile payment apps. In 10 or 20 years, it's going to become harder, if not impossible, to get cash without everyone knowing about it.   

I watched a video from Australia yesterday where a woman was complaining that her bank no longer holds any cash at all. It's all digital now. She wanted to withdraw some cash from her account, but was told by the bank clerks that they can't help her. They even suggested that she should transfer her money to a different bank and request cash withdrawals there. She did. Fcuk this world!

[kryptqnick]

Thankfully, banks are very chill in my country (about pretty much everything up to a certain financial threshold), and dealing with cryptos is very common, so such things aren't common in my country. Moreover, people often use platforms where you just make a transaction after placing an order, but don't keep your money on the platform. The platforms are still centralized, but they have a lot of reviews and since you're only risking the money for one transaction, they are convenient.
Trusting individuals is sometimes more difficult than trusting a website that specializes in a certain activity and has a lot of positive reviews, so I'm not sure that it the future.

[PrivacyG]

Trusting individuals is sometimes more difficult than trusting a website that specializes in a certain activity and has a lot of positive reviews, so I'm not sure that it the future.

The problem is not seen now.  It will be more evident in the future.  As Pmalek says, we are moving toward a Cash less society.  This will bring all sorts of problems, including about the usage of Cryptocurrency.  And including the websites you say you are trusting right now, as they will likely not close an eye to smaller Transactions any more.  It happened almost everywhere in the world.  I hope it does not happen to you, but I really doubt it will not.

We had a lot of ATMs which never asked for Know Your Customer.  Good luck finding one now, because it is getting impossible.  We could register onto Centralized Exchanges and deposit, trade and withdraw freely, with no required personal identification.  Now good luck finding a reputable one that will not ask you for an ID.  Because this is getting impossible too.

Cash payment limits are low enough that they become inconvenient and people rather put their money on their Bank account instead so they bypass the limits.  You bypass the limit, but by kneeling to control and Surveillance.

What I see is that barter will be the only solution in such a world.  I give you Bitcoin, you give me bread.  Of course this means more possibilities of getting scammed out and such, but if that is the only remaining alternative what can you do besides risking it or kneeling to the stupid restrictions.

[HideYourKeys]

We will see, luckily, P2P cannot be stopped, so we can rest assured

[avikz]

I keep reading about bank accounts in the UK, US and EU being frozen due to crypto associations. This is concerning me, and I am reluctant now to use any exchanges to purchase Bitcoin. However, I am happy to purchase crypto via P2P transactions. These can be either cash payments in a face-to-face meeting, or by bank transfer to a trusted person's personal account. Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Now, what about crypto-to-crypto exchanges? Will government oversight and intervention restrict those. This could lead to decentralised swop services, and surely this is contrary to the wishes of the banking puppet masters?

Well P2P transactions are not the future. No matter how we want it to be, but government eventually will put a lot of restrictions on that. Banking institutions are freezing accounts all over the world for P2P transactions as well. However, if there's a licensed exchange in that country, the transactions will be safe. But you won't be able to avoid tax on that.

I believe, P2P transactions are here to stay but we need to be very very careful before we initiate a transaction and need to verify the details of the other party in order to stay safe. A lot of crime proceedings are also mixed in the P2P trading.

[Mate2237]

I do not like face to face trading because it is dangerous. In the country I am, I have to avoid it.

You have not given your reasons why you don't like face to face trading of cryptocurrency and from the op explanation and the countries.he mentioned, restricting or freezing Bank accounts that are links to cryptocurrency related transaction. So with that face to face and crypto to crypto transaction will be the best. Then you can also trade with someone account which the op mentioned. And I don't see any dangerous in face to face trading with a friend or someone you know. And you don't have to trade with someone you don't know.

When my country Central Bank, asked all the commerical Banks to freeze any account that was connected to cryptocurrency, people diverted to face to face and well knowing people for trading. And the matter what exchanges are good avenue for trading.

[shield132]

I keep reading about bank accounts in the UK, US and EU being frozen due to crypto associations. This is concerning me, and I am reluctant now to use any exchanges to purchase Bitcoin. However, I am happy to purchase crypto via P2P transactions. These can be either cash payments in a face-to-face meeting, or by bank transfer to a trusted person's personal account. Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Now, what about crypto-to-crypto exchanges? Will government oversight and intervention restrict those. This could lead to decentralised swop services, and surely this is contrary to the wishes of the banking puppet masters?

My country is very crypto-friendly, so I have never had a problem with being associated with crypto and I have been using local CEX (sorry, I know it's a very bad practice but I need it) for years without a problem but I have a question about P2P payments. If I exchange crypto via P2P payments frequently, won't I be in trouble if I receive fiat from strange persons? What if any of my internet P2P partners does something illegal? I am personally afraid of that and that's why I hesitate to do P2P trades.
I think that we will have more official and regulated exchanges in the near future and P2P transactions won't be on rise but this might be individual to each country.

[Cookdata]

I keep reading about bank accounts in the UK, US and EU being frozen due to crypto associations. This is concerning me, and I am reluctant now to use any exchanges to purchase Bitcoin. However, I am happy to purchase crypto via P2P transactions. These can be either cash payments in a face-to-face meeting, or by bank transfer to a trusted person's personal account. Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Now, what about crypto-to-crypto exchanges? Will government oversight and intervention restrict those. This could lead to decentralised swop services, and surely this is contrary to the wishes of the banking puppet masters?

This campaign of banks avoiding crypto transactions aren't only in those locations alone, Nigeria has followed the bad wagons and has instructed Banks to closed down any banks associated with crypto transactions. I specifically had some issues with my bank and I was given a form to fill and I saw an option that ask if I do crypto and online gambling. The option specifically stated due to Central Bank new reviews on cracked down cryptk activities, they have the right to close down my accounts and I just select NO because even if I do, they don't expect me to admit.

P2P transactions are actually on the increased but then again to show you that Nigerian government is not playing around with crypto transactions, they have force Binance to take down P2P for Nigerians and NGN other trading pairs. They have also ban Binance from web and other crypto exchanges like Kucoin, crypto dot com, and Coinbase including Blockchain Explorer, the government is sick to be sincere.

With all these campaigns and ban, most crypto traders are now used to sending crypto funds through banks and yet no one will ever know about it because they don't include crypto in the transaction reference, what they do is just to add the sender name and everything is good to go.

[Ojima-ojo]

Aside the risk with face to face p2p  deals other methods of p2p that could be secured enough is and still remains the best option to stay decentralised and not involved the bank directly, this has been what the situation is here in my region, government ban direct bank transfers for cryptocurrency buying or selling.


But the p2p market becomes the only option that is readily available with some form of privacy,but not on a face to face model.

[Vincom]

I keep reading about bank accounts in the UK, US and EU being frozen due to crypto associations. This is concerning me, and I am reluctant now to use any exchanges to purchase Bitcoin. However, I am happy to purchase crypto via P2P transactions. These can be either cash payments in a face-to-face meeting, or by bank transfer to a trusted person's personal account. Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Now, what about crypto-to-crypto exchanges? Will government oversight and intervention restrict those. This could lead to decentralised swop services, and surely this is contrary to the wishes of the banking puppet masters?

As users are trading crypto assets worth tens of billions of USD and generating millions of USD in revenue each day for CEXs, traditional banks are not receiving any benefits. I think they cannot be satisfied with that, they want to participate to share this market share rather than destroy the crypto market.

In many countries, when banks do not support crypto-related transactions, the liquidity of the crypto market in that country is seriously reduced, meaning that investors buy and sell crypto under more difficult conditions. This is not good for the development of the market. I believe that traditional banks will soon support crypto-related services to generate revenue in the form of transaction fees or management fees. The same is true for governments: they will manage to collect taxes from crypto instead of trying to destroy crypto.

[GeorgeJohn]

P2P transaction government cannot monitor it because it is something that deal with the individual and for government to track it and they restrict it I think it will be very difficult for them it is only the backing system I know quite well that government can restrict their transaction through bank transfer which means that it is the bank that will be crediting for any transaction that is being done, in my country there is a restriction of bank transaction that has to do with the cryptocurrency, but in p2p it cannot be restricted from my perspective.

[davis196]

I keep reading about bank accounts in the UK, US and EU being frozen due to crypto associations. This is concerning me, and I am reluctant now to use any exchanges to purchase Bitcoin. However, I am happy to purchase crypto via P2P transactions. These can be either cash payments in a face-to-face meeting, or by bank transfer to a trusted person's personal account. Will this be the future of Bitcoin for us mere mortals, or will sanity prevail and allow us to return to using exchanges?

Now, what about crypto-to-crypto exchanges? Will government oversight and intervention restrict those. This could lead to decentralised swop services, and surely this is contrary to the wishes of the banking puppet masters?

Who is stopping you to use exchanges? Are crypto exchanges like Coinbase or Binance banned in any big western country? I don't think so.
Many people keep talking that Bitcoin/crypto is widely adopted by more banks, companies and individuals and at the same time, people like you claim that banks are blocking accounts, that were involved in crypto trading. Am I missing something? You need a bank account for P2P transactions as well. The only difference is that your bank doesn't know that you are doing fiat-crypto transactions.
Crypto regulations will keep pushing forward and the governments would want to achieve complete control over the crypto industry. Maybe soon we will have to declare our hardware wallets to the tax authorities, but I'm sure that the crypto fanatics will find a way around this.

[Z390]

Peer to Peer transactions and trades are good for privacy but people will need to have deep knowledge on how this trade type works and how scammers can exploit it to scam naive newbies.

It doesn't ends there, people can't even tell the difference between centralized and decentralised crypto platforms this days, when a platform overs a P2P service they go ahead and start using the platform, my point is not all peer to peer platform are to be used, what is the use for P2P when they ask you to pass KYC verification?

Most of people will choose convenience than privacy and if it is not mandatory, no other choices available, they will choose things that can bring convenience, not privacy. I don't expect banking restrictions will increase P2P transactions too much.

Privacy isn't even a thing here, if a peer to peer platform can bring convenience to their users without asking for any verification then its all we wanted, banking restrictions won't indeed increase P2P transaction, because too many people are fine with centralized entities even while Bitcoin is a decentralised digital coin.

Many people in crypto space still use and trust centralized exchange today, for their own reasons that I don't get, even after all the hacks and rugpull from different centralized exchanges in the past, why haven't people abandoned centralized exchange? The convienece of using a centralized exchange I guess, and some will say its because centralized exchanges are best for trading and volume wise.

People have their rights to choose and I bet that they will choose to use KYC platforms over decentralised or P2P platforms.

[Alone055]

To answer the question in the title; it definitely will.

In the country where I live, the government and banks are all against cryptocurrencies, and even though there are no clear rules about it like being illegal or anything, they don't allow you to make transactions that are associated with cryptocurrencies, and if they find you doing that, your account will be frozen and your funds will be confiscated. They will ask you to provide proof of the payments and they will only accept the proofs if they find them satisfactory, otherwise, they won't unfreeze your account or release your funds.

So, what we do to either buy or sell our cryptocurrencies against the local currency is use P2P platforms where local merchants will send or receive the funds and then you get or release the assets for them. In this way, the transactions being made between us and the merchants are considered normal transactions and aren't marked as transactions being connected with cryptocurrencies.

Platforms such as Binance would even warn you not to mention anything related to cryptocurrencies anywhere when making a transaction to avoid problems when using the P2P platform.

[Apocollapse]

Who is stopping you to use exchanges? Are crypto exchanges like Coinbase or Binance banned in any big western country? I don't think so.
Many people keep talking that Bitcoin/crypto is widely adopted by more banks, companies and individuals and at the same time, people like you claim that banks are blocking accounts, that were involved in crypto trading. Am I missing something?

Actually he's right, you can read this https://www.charltonbaker.co.uk/news-blog/banking-and-crypto

It's true even though Bitcoin is legal in Western countries and they recently approve Bitcoin ETFs, but strangely the banks still not want to accept Bitcoin.

You need a bank account for P2P transactions as well. The only difference is that your bank doesn't know that you are doing fiat-crypto transactions.

Well, that's actually what he looking for. The banks only know other people send him money and have no idea what actually he doing. If the bank officer ask him about the funds, he need to prepare about that and provide the evidences.