The Bitcoin trading platform local bitcoins calls for an authentication of the user. From a certain amount, the user is forced to register with your ID card. Local bitcoins to a change to a fundamental aspect that had learned to appreciate a lot: the lack of Know-Your-Customer arrangements.
On Reddit, a Screenshot suggests that the days of the platform LocalBitcoins.com have found an end:
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The picture shows a error message, the Online platform is local bitcoins. So far, were able to organize themselves to users about the page, in order to buy Bitcoins and sell. A well-known advantage for many users, the lack of KYC and AML policy of the site. However, the US-American local bitcoins-seller “Morpheus” headlines, as the authorities took him under the charges of money laundering made as soon as 2017.
The regulators access to
Now local bitcoins the pressure seems to give in. The Screenshot shows that after a certain amount of authentication with ID-card must be held. The amount is not clear from the Reddit post. With the registration of the user, the company protects itself against potential investigations relating to money laundering.
Local bitcoins was one of the first platforms for trading the digital Gold. To gave great popularity to the fact that users were able to right to anonymously enter in contact with each other. The unique feature was that the participants suggests – as the Name of the local meetings and the exchange of the U.S. Dollar or Euro in Bitcoin so. For the operators of the site, users were not clearly identifiable. The KYC-policy is circumcised, this privacy.
Who’s throwing the now desperate hands in the air for German, this Information is not relevant. In Germany you can’t use local bitcoins. This is nothing New. The sale and purchase of crypto-currency is here difficult. Thanks to the banking license from the BaFin, the Installation of Bitcoin ATMs-or the Act on local bitcoins is not allowed in Germany – only License media.
KYC-less Alternative to local bitcoins
The new policy of local bitcoins is likely to lead to more traffic on alternative platforms. The most prominent Alternative is BISQ, the decentralized Exchange (in short: DEX). BISQ is a Software that brings buyers and sellers of crypto-currencies directly in contact with each other. Also, the exchange will be consummated on BISQ-Software. The parties involved need to trust each other. Because the money is held in Escrow. We exchanged digitally and directly through the Internet (peer-to-peer without any Central authority that can censor the exchange). There may be some local bitcoins-Handed to increase in the Wake of the new KYC policy.
It seems that The screw is tightened. States have Wind of this supposedly anonymous Internet currency. As an Alternative to the national currency system, Bitcoin can make for instability in the country’s own currency. In addition, money laundering can be operated, and the Treasury loses its main source of income. The KYC policy in combination with the pseudonyms of the Bitcoin Blockchain can recover all of the money flows again and associate. That is why it is esstentiell for Blockchain-analysts, to establish a connection in the real world, to real people.
However, the increasing regulation may make decentralized Exchanges more attractive. This is because many DEXs are still suffering from low volume.
Decentralisation is the future – to regulate here is a game that only lost can be. Below-the-line institutions such as the BaFin of Innovation in Germany are solid in the way. This is the number of Bitcoin vending machines in Germany – there is no.