Why is LocalBitcoins after your ID when Binance isn't?

Sean M

Posted on April 14, 2019 10:16 PM

A slew of traders and users have reported additional restrictions on trading, buying or selling, even small amounts of bitcoins on LocalBitcoins as new policies take effect this month.

For some reason, the exchange that helped OTC traders build up their livelihood around harmless and simple trading with other people, privately, are now being asked to provide excessive and invasive identification documents to do trades as small as $40. How did this happen? And why did LBC allow this when even the biggest crypto exchange in the world, Binance, has much more relaxed no-kyc trading options?

To get to the root of the question, we first have to understand what LBC really is. For too long, LBC has been championed as a "protector of OTC freedoms", "great place that supports bitcoin" and "an amazing service that allows people to use Bitcoin as it was intended"....when in reality all LBC did was cash in on the easy regulations and disinterest of the government to make money as long as they could off YOUR hard work. The moment they were asked to stand up for their users by the EU and the Finnish government, they folded like a cheap tent, Binance and MoonTrade on the other hand actually shut down operations and MOVED to better freedom loving nations. Did you get that, these people are happy to sell you out while Binance and MoonTrade actually MOVED everything at great expense? In short, people had this fantasy in their heads that LBC was great and awesome while LBC was just a giant fraud, a scheme to fool people into believing that they value their users. Not once has LBC publicly advocated for the user's right to privacy. Not. Once.

The epithets that people give to LBC are more fit for where we are founded on the principles of freedom and privacy, we are founded by very successful traders disillusioned by the increasingly Orwellian tactics of LBC. In short, people who saw through the bullshit that LBC has peddled and profited from for far too long.

Of course, there are always a few people who will defend the slow erosion of their privacy, first they defended a fee to deposit crypto into LBC...A FEE....TO DEPOSIT CRYPTO....INTO LBC. 😂 Not even the biggest scams in Crypto have ever charged you to deposit your hard earned crypto to their platforms. But LBC did. In this one aspect they are definitely the biggest.....the BIGGEST SCAM. 

And people defended it, then LBC started instituting trading limits and mandatory KYC for people who wanted to post ads, more people left and fewer people defended it by saying "oh it's for the better", now finally LBC has instituted mandatory, site-wide KYC for everyone. Even little timmy who just wants to buy or sell $5 of Bitcoin to understand the world of crypto. Great going LBC...what next? Blood samples? DNA samples? Will you ask people for their fingerprint, birth certificate, father, mother and extended family info as well?  Or better yet, are you just going to skip the whole drama and put us all on trains to be gassed in ovens? Where does this stop? The answer is, nowhere. 

Organizations like LBC do not have any standing or principles, they are happy to swindle people while the going is good and at the first sign of pressure they abandon those same people who made them successful like rats. Every time some agency sends LBC an illegal demand, LBC bends over and spreads it's cheeks while screwing it's users. Are these the kind of people you want to trust with your info? The same LBC that has helped get absolutely innocent average folk running a business get arrested by government agencies around the world on the most pathetic, weakest of excuses? To top it all off, LBC only supports Bitcoin and has not improved in 8 years of being in existence. The support times (according to their own admins on reddit!) are 180 days! And if you get put on "Forced Holiday", a nice way to say "You're banned, thanks, we're gonna keep your money for 6 months and you won't get it back after that unless you give us all your info from birth to death", you're finished. 

To give you an idea of just how comical, outdated and uninterested LBC is in your business or success, check out this list of advantages offers over LBC. And we are just a startup! With none of LBC's development budget!

1. No deposit fee
2. No fee or deposit needed to list ads.
3. No KYC
4. Lower fees, other platforms charge 1%-3% per transaction, MoonTrade charges 0.25%
5. Lower withdrawal fees.
6. Multiple Cryptocurrency support.
7. Bitcoin, Ethereum, Ripple and ETH Token trading support - Selected tokens being made available for trading soon.
8. Support team that responds within 1 hour unlike other exchanges where they take a week to respond.
9. Open forum for users to talk and network.
10. Many payment choices from all over the world, including some that are not available on LBC etc like "Cash By Mail", "iTunes" etc.
11. Support available in English, Russian and Spanish.
12. Easy way to appeal negative feedback. etc
13. Secure escrow for every trade.
14. Immediate "Dispute" trade feature, no more waiting 2 hours for trade to expire before you can open dispute.
15. Disputes resolved in 20 minutes.
16. Finally, this feature is being planned to TRULY give you peace of mind. MoonTrade will backup EVERY trade against fraud when you use MOOT our in-house stable coin. If you lose money to a trade partner on MoonTrade, and MoonTrade investigates and finds you weren't at fault, MoonTrade will reimburse you for your loss. Sign up and follow MoonTrade to keep an eye out for when this feature will be released.

We want traders to have a happy time trading without worrying about silly things.

Imagine, if you will, you open a business and you have a bunch of great loyal customers who make you rich. Then one day you just decide to tell them "thanks for your support now we are going to tie you up like a dog and make you beg to buy stuff from us, if you don't want to beg, we don't care", can you imagine how fast you'll go out of business? Because that's what LocalBitcoins  is doing to you if you still use it, they've turned their user's from people into dogs and not content with this, they want to turn you into well-trained dogs that beg.

You don't have to beg a third rate service to be successful when you have someone who truly believes in you. believes not only in YOU and your principles but we also actively support the decentralized, freedom-loving and private nature of crypto. After all, unlike LBC, we didn't just "get lucky", we worked hard and spilled blood, sweat and tears to make this exchange for you.

LBC is a dead horse, best confined to the trash heap of history as a has-been. They never had your back or anyone's else's. They are what is essentially an exit scam on you. Try us, you will see the difference, because something built to serve YOU actually WANTS to serve you, unlike something like LBC which is built to turn YOU into a servant.

Leave a Comment:
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globalcrypto true. They wouldn't even let me sell Pizza even after i verified everything and i hated giving them my ID. They are like the new PayPal, they take your ID and then ban you and use your ID to make sure you can never use them again. Fuck em is right!
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Their verification also doesn't work, scammers use fake IDs but never get caught. But do some nice volume and LBC hands over your info to the government. These people are colossal idiots. -_-
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Localbitcoins sucked the joy out of having a crypto trading business. I had a 5 year relationship with them and they banned me because some scammer complained, and they also banned him.this was after i had made them over 300 BTC (in biz since 2012. Fuck em