LocalBitcoins traders are expected to verify their identity if they are trading volume is high on the platform. This has made the traders to search other exchanges that don’t require KYC (Know Your Customer).
According to a Reddit user posted in Bitcoin forum /r/bitcoin. It states that a LocalBitcoins users trade volume was “Significant” and so the trader has to verify the identity in order to continue trading. The message from LocalBitcoins website was :
Error! Your trade volume has been significant in the last twelve months. Please verify your identity to continue trading.
This isn’t the first time LocalBitcoins has been asking for verification. This year January a post on Reddit where the trader said that localbitcoins are requiring for his ID. Due to this move, the trader’s attentions have caught by other exchanges like Bisq, Hodl Hodl, and Barterdex.
Lots of interest and new followers today in the wake of the LocalBitcoins KYC news.
If you’re new to Bisq, read/watch this first: https://t.co/R5VAHU8PZR.
It’s important to understand what Bisq is, why it exists and how it’s different before you dive in.
— Bisq (@bisq_network) 17 April 2018
LocalBitcoins also had a verification process but it was never been used because it was not mandatory to do the trade. But traders believe that being verified will help them get trades on the platform.
LocalBitcoins relay on verification for a company called Jumio. Jumio has an ID service called ‘Netverify’ and it lets users upload the picture of their official ID and in some time the program gives the status as genuine or not.
This is a great system for people who would like to submit their documents and trade. But as some traders believe in decentralization then they need to find an alternative decentralized exchange (DEX). There are many decentralized exchanges that offer services as Localbitcoins but LocalBitcoins has a reputation and people feel safe trading through it.
Are you are a localbitcoins trader? what do you think about the KYC verification? would you do it or not? let us know in the comment below