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 delivery of their coins in exchange of cash by personally meeting the seller.
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.
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— Boris (@Borisuithetbos) June 2, 2019
LocalBitcoins is one of the widely used crypto trading platforms for trades based in jurisdictions with restrictions to buy and sell digital currencies. 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 of 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?
LocalBitcoins has long been trying to get into the good books of regulators by introducing know-your-customer (KYC) and anti-money laundering (AML) rules. In April 2018, the platform made it mandatory for 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 AML/KYC standards of the European Union.
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.