LocalBitcoins was one of the most popular peer-to-peer (P2P) crypto trading platforms, with it being very popular in the developing world. However, back in June the P2P Bitcoin exchange decided to pull all cash trades, meaning crypto fans now need to complete bank transfers to use the platform. This didn’t go down well in the crypto community, as a large portion of its customers only use cash – mostly due to the fact that they don’t have access to banking.
As a result, other P2P Bitcoin exchanges that offer cash trades have seen their trade volume explode. This month, Bisq – a decentralized Bitcoin exchange – has seen its trade volume climb to a new all-time high (ATH), not an uncommon trend following the LocalBitcoins move.
No Regulations or KYC Needed
One of Bisq’s most defining features is the fact that you don’t need to register or complete any KYC to trade on the platform. There is still a large chunk of the global population that cannot complete the strict KYC and AML processes that most exchanges require and is why these decentralized exchanges exist. While some people do choose to use these types of exchanges for nefarious reasons, the vast majority of all trade volume is from legitimate sources.
Regulations Coming Into Play
LocalBitcoins has been hit hard lately by regulations, being forced to shut its doors in Iran not less than a month ago. Tough new Financial Action Task Force (FATF) regulations are coming into place, with numerous exchanges bowing down and complying instantly. Along with LocalBitcoins, Ripple is another one of the early adopters of the regulations; subjecting every XRP address to a FATF risk assessment. While compliance with these new regulations will eventually become mandatory, for now it’s only optional. This raises the question of are these exchanges and projects complying right away to try and score some credit for when breaches are found?
As Bitcoin markets pick up pace once more and head towards the moon levels we saw in 2017, more and more people are looking to get into crypto. These people all need a way in and those without access to banking or proper forms of identification have to find alternative routes. While services like LocalBitcoins begin to shut their doors to these crypto investors, companies like Bisq welcome them in with open arms – allowing them to trade the crypto markets quickly and efficiently.
The next financial revolution is going to be tech-based, so sites like Bisq are critical in ensuring the new wave of wealth is evenly distributed.