Many Bitcoin marketplaces have started to falter because of various reasons like difficult KYC and favoritism towards certain nations. Localbitcoins, a peer to peer bitcoin marketplace that is based in Helsinki, Finland, started to see a downfall in its user base and trading volumes over time.
The company’s trading requirements and KYC implementation have led to its significant slowdown. These requirements and complications have forced investors to migrate to other peers to peer crypto markets.
The migration of the investors is in a huge number, and this mass migration made the company, Localbitcoins, sink down like an anchor in the ocean. The volumes of the company have never been this low since the year 2017.
What happened after Localbitcoins implemented their KYC and other trading restrictions?
The Finnish peer to peer crypto marketplace had been providing over the counter trading platform since 2012. It did not take long for Localbitcoins to quickly become a very popular avenue for traders to acquire their Bitcoin mainly because the platform used to allow it’s a user to post offers easily on the website.
This provided all it’s users an avenue where they could trade in the peer to peer fashion of old, without any intervention from any other third party. In the beginning days of the platform, Localbitcoins did not have a lot of KYC requirements or other restrictions on trading.
At that time, anybody could easily trade as much as they wanted, and they also did not have to verify their identity on the platform. But this has changed nowadays, and the platform is often criticized for imposing too many strict KYC practices and adding many different trade restrictions.
Such strict actions taken by Localbitcoin led to it’s a sudden and hard downfall as the users did not want those many complications and soon migrated to other exchanges that had easier methods of using them.
