Localbitcoins recently implemented the know-your-customer and anti money laundering processes obviously in a bid to comply with the regulatory pressure on cryptocurrency exchanges. The platform has before now been the favorite of users who prefer anonymity.
It surprisingly announced that users who access the platform through Tor stand the risk of losing their cryptocurrencies. Even though it is not yet clear the basis for the warning, many users of the platform are already looking towards Bisq, another peer to peer network.
Some users of the Localbitcoins platform are of the opinion that the company is gradually falling out of favor by its inclination towards openness in the bid to meet expectations of central authorities.
Dash for Anonymity
A post at the Dash blog stated that the fact that Bisq supports Dash is an added advantage since the Dash network is privacy supportive. It seems to point to Dash adoption as a channel to anonymity in the increasingly regulated crypto space.
Localbitcoins used to be an anonymous peer to per platform before it started demanding KYC and with its belligerent stance against Tor, one of the biggest anonymous exchanges has shown that it is now against anonymous user of cryprocurrencies.
In a tweet responding to Richard Bensberg who is a transaction compliance expert, Wix wrote:
“Warning to all LocalBitcoins users: LocalBitcoins requires KYC and monitors all transactions.
Meanwhile, the Bisq P2P network is 100% routed over Tor to protect the privacy of all its users. To accept a trade offer your computer connects directly to the maker’s computer over Tor.”
Aside Bisq, other Dash supporting exchanges that operate on peer to peer basis are Wall of Coins, CoinCola and Bitcoin.de.
The concern is rising among crypto users who love anonymity, but as long as Bitcoin adoption is still at a low level, the regulators still have a say.