LocalBitcoins has removed the option to perform cash transactions on its site. No longer can users meet in person and exchange Bitcoin for cash. This somewhat defeats the idea of “local” as transactions can now only be carried out online.
LocalBitcoins is yet to comment on why it has made this decision.
The news spread like wildfire across social media and bitcoiners discussed new ways to trade in-person for cash. Ray Youseff, the founder of the peer-to-peer platform Paxful, noted on Twitter that his platform has started seeing a great number of new registrations.
“Localbitcoins is now Remote Bitcoins — They took down all their cash offers and the refugees are flooding to Paxful VIP support for all cash vendors,” Youseff exclaimed. “We won’t let you down — Cash is still king in the emerging world.”
The removal of cash trades follows the peer-to-peer platform’s recent addition of more KYC requirements for large traders and the operation has also ceased serving Iranians. The news also comes two days before the launch of Local.Bitcoin.com, a peer-to-peer marketplace that will allow individuals to trade bitcoin cash (BCH) privately with anyone in the world.