Swedish peer-to-peer crypto exchange LocalBitcoins has removed its cash-based trading service without any prior intimation to its customers.
First pointed out by a Reddit user on Sunday, the platform no longer shows “In person: Cash” option which allowed traders to take by personally meeting the seller.
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Many users of the platform also complained that it has canceled all pending cash trades.
The unannounced removal of cash trading option has created a stir in the community and many are turning their backs on the peer-to-peer platform.
Time to start a application/site/forum to meet people who like to sell or buy and other coins face to face de way they like
Instead of using
— Boris (@Borisuithetbos)
LocalBitcoins is one of the widely used crypto trading platforms for trades based in . According to its website, the peer-to-peer exchange is offering its services in “248 countries and 7571 cities.” Last week, the exchange reported that it has facilitated $58 billion worth Bitcoin trades across the globe.
And without any official announcement, it is still not clear whether the closure of the particular service is temporary or a permanent one.
Fight against anonymous traders?
It’s been a while, LocalBitcoins was trying to get into the good books of the regulators by introducing know-your-customer (KYC) and anti-money laundering (AML) rules. In April 2018, the platform made it mandatory for the high volume traders to disclose their identity and halted anonymous trading.
Earlier this year, the Helsinki-based company announced that it is going to make the trading platform compliant to the .
Competitors taking advantage
Meanwhile, with the community resentment against LocalBitcoins, other peer-to-peer trading exchanges offering in-person cash option are boasting their services.
LocalEthereum, offering peer-to-peer trading options only for Ether, responded to LocalBitcoins’ move by temporarily removing transaction fee for cash-based trades.
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