On June 1, cryptocurrency enthusiasts were shocked to hear that the peer-to-peer exchange Localbitcoins has ceased offering in-person cash trades. According to a few users, all pending fiat trades have been canceled, leaving local traders who prefer cash high and dry and forced to seek other avenues.
Localbitcoins Removes In-Person Cash Trades Forcing Traders to Look Elsewhere:
One of the oldest over-the-counter BTC exchanges, Localbitcoins, has removed cash trades from its list of options. This means that people cannot use the platform to meet in person and sell BTC for cash or vice versa. Localbitcoins hasn’t officially announced why it removed the option, but a few traders have stated that all in-person cash trades were suddenly canceled. “I logged in and found my ‘in-person’ sell offers were all deleted, and the ‘add new’ prompt now has no ‘local’ options, only ‘online’ ones — Kind of defeats the purpose of ‘local’ in the name,” one trader detailed on the Reddit forum r/bitcoin.
The news spread like wildfire across social media and bitcoiners discussed new ways to trade in-person for cash. Ray Youseff, the founder of the peer-to-peer platform Paxful, noted on Twitter that his platform has started seeing a great number of new registrations.
“Localbitcoins is now Remote Bitcoins — They took down all their cash offers and the refugees are flooding to Paxful VIP support for all cash vendors,” Youseff exclaimed. “We won’t let you down — Cash is still king in the emerging world.”
Sure enough, after logging on to the Localbitcoins site, all local in-person trades have been removed from the drop-down menu. Localbitcoins’ reason for stopping in-person cash trades remains unclear right now and a few other users complained that their cash trades were canceled without any warnings. The removal of cash trades follows the peer-to-peer platform’s recent addition of more KYC requirements for large traders and the operation also ceased serving Iranians.
Please note, that is not a bit of financial advice, nor the WhaleToBe team’s view