Yesterday, a user called yellowcuda posted a thread on the Reddit site posting an image that supposedly shows LocalBitcoins requiring an ID to “significant” traders registered on their platform to keep using it. So, this will means that this popular site of bitcoin trading and escrow has started to enforce KYC (know your customers) policies. The image posted by the user shows the website interface and the message requiring the ID. The image is shown below.
LocalBitcoins is a Finland-based cryptocurrency exchange site, that has focused in offering its services to little traders that wanted to meet or do trade online, functioning like a sort of P2P market with an escrow service for users wanting to use it. By its characteristics, it is a site that encourages privacy amongst their users, and this measure taken by their staff has worried and confused some people.
The truth is that the site was a pioneer in bringing cryptocurrencies to the people without exposing their identities online, being founded in 2013 in the emerging age of cryptocurrencies. And now, some people feel that they are exchanging their privacy for being able of trade cryptocurrencies on the site. We commented about the rise of these kinds of measures in the future in an article called “Are Cryptocurrencies Trading Privacy For Adoption?“, where we anticipated these exact kind of situations happening.
The LocalBitcoins site has not released any official statement regarding this resolution, and no one knows what is the amount of bitcoin that you must trade to be considered a “significant trader”. Despite having traded high quantities of currencies, for some users in the Reddit thread, their anonymity is of utmost importance, and they have started also proposing substitutes to the website. Between them, the most important are two trading platform called Basqu and Hodlhodl, services that provide an analog experience to LocalBitcoins. The Reddit thread mentioned can be found here.