Localbitcoins, a peer to peer cryptocurrency trading platform, has been growing in popularity due to its friendliness. However, it has not always had a positive impact on all its users.
Some Australian traders are not happy with what Localbitcoins has turned out to be. One trader who spoke to Bitcoin.com lamented how the platform has become a den of lions. The trader is part of a group of 3 people who coordinate to make profits by trading on the platform for roughly 40 hours.
You Need Training Before Joining Localbitcoins
The group started offering cryptocurrency services either on online platforms or by meeting clients. The meetings take place during the day in public venues with proper surveillance cameras. Additionally, before meeting clients, a background check which caters for a basic know-your-customer (KYC) procedure is conducted.
The trader who spoke to Bitcoin.com on condition of anonymity said that they were duped by scammers when they were still new on the Localbitcoins. The trader blamed themselves for being “too trusting towards prospective customers.” The bank also froze their account after it was hacked and used to conduct malicious activities.
According to the trader, Localbitcoins is “a lion’s den. I advise anyone to get training before going on the platform.” However, the trader is hopeful that the upcoming AML policies to be implemented by the platform will help drive criminals out. Banks are also not very welcoming to traders on Localbitcoins.
Another trader, MJ of Bitcoin Babe, has close to five years’ experience trading on Localbitcoins. MJ runs the trading company single-handedly with more than 100 hours being spent on the company on a weekly basis. Her trades are conducted online as well as face-to-face. Before leaving to meet a customer, MJ informs family and friends of the location and approximate time she will spend.
For MJ, “the benefits of the platform have been drying up lately.” Also, MJ blames Australia’s regulatory watchdogs for rushing “into things without a proper assessment of the market and community… small traders/business exit the scene because the cost of regulation killed it for them.”