LocalEthereum has slashed its trading fees following LocalBitcoins’ decision to ban cash. This is ban left many in the Bitcoin community surprised. As such, LocalEthereum is seeking to make the most of it and improve its market share.
LocalBitcoins announced that it would ban the option of in-person cash transactions altogether. Accordingly, users will be no longer able to transact cryptocurrency for cash in-person from now on. The move is arguably the latest in a protracted war against cash and privacy. This is because LocalBitcoins probably eliminated this option as a way to conform to regulatory requirements on disclosure.
The Reason for The Ban
LocalBitcoins is a Finnish Bitcoin trading platform that has long had the option of cash trading for the duration of its existence. This is essentially a process whereby two Bitcoin holders meet in person and exchange Bitcoin for cash. The company reported in February that it would move toward compliance with European Union regulations.
Previously, the company banned anonymous trading on the platform. Bitcoin traders would henceforth need to have a unique identity to transact. The move is in line with European Union KYC (Know Your Customer) and Anti-Money Laundering legislation. The move to ban cash trading is the latest move in this direction.
Bitcoin traders like the cash option a great deal. After all, in-cash private trading is a core part of Bitcoin trading privacy. The cash trading option remains one of the pioneer means of crypto exchange for good reason.
Some wonder how far this industry will go to be on the safe side of regulators. This is because centralized agencies continue to try and control Bitcoin in an intrusive way. Reddit user Bitsanity captured these sentiments;
‘’Too bad so many services for the decentralized world end up being centralized and captured by the very forces they sought to disrupt.’’
The move, therefore, means that traders have to conduct exchange on LocalBitcoins. This is a problem that has come about in apparent moves to comply with authorities. LocalBitcoins has also sanctioned users in Iran who will no longer be able to use the exchange. Accordingly, the political issues of centralized agencies have seeped into crypto trading.
In this adversity, LocalEthereum has seized the moment as a marketing opportunity. This company, which has a similar name to LocalBitcoins, trades in Ether (ETH). LocalEthereum will eliminate transaction fees for cash-in-person trades. This move is definitely a direct response to the LocalBitcoins ban and could be an attempt to take up aggrieved customers.
Cash-in person trading is one of the oldest ways to exchange cryptocurrency. It is incredibly safe if you follow proper procedures. One of these is to conduct the trade in a place that has cameras. One person comes with cash, the other Bitcoin. LocalEthereum is aware of the popularity of this option and seeks to capitalize fully.
The war on cash trading will likely continue in most jurisdictions. This means that even though the likes of LocalEthereum provide this option, the future remains in limbo. Crypto users should not celebrate winning battles and losing wars. The war is about control of cryptocurrency and that is what all eyes should be on. The outcome will be a consequential one to crypto as we know it.