LocalBitcoins Quietly Removes BTC-for-Cash Trading Option

The platform is facing community backlash after its abrupt move.

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.

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LocalBitcoins has removed Cash trades! from r/Bitcoin

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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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.

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