A thread on the most popular Bitcoin subreddit blew up where a user, for the first time, posted a screenshot of a Localbitcoins error that demands ID (KYC/AML) verification from the user stating that he/she has had significant trade volume in the last 12 months.

Prior to this event Localbitcoins has been the go-to place for buyers and sellers who wanted to trade in FIAT in a secure fashion without a centralized exchange in the middle. Even though the site doesn’t offer decentralized trading they still have an escrow service that seemed good enough for most. After checking the Localbitcoins website we found no mention of the official business side KYC/AML verification process, the FAQ still only mentions the process as something that certain sellers might demand to comply with local regulations.

This is slightly disturbing as it seems that local regulations caught up with the website so we looked for alternatives that are worth a look and a try:

The website supports multisig (P2SH) contracts with the user controlling a key thus the funds can’t be transferred without his permission. The exchange has low trading fees and allows decentralized P2P trades without the need for KYC/AML verification. The site has a really good UI and a usable filter system for the best deals globally. Their plans include integration of the Lightning Network, addition of other cryptocurrencies and integration with existing wallet providers.

Trading is done in real-time with the help of the official Paxful wallet and via an escrow that only releases funds when payments are verified. The wallet integrates a P2P marketplace where buyers purchase Bitcoin form trusted vendors. There is a reputation system in place so people have an easier time with the decision making. The company is US based and features a BitGo Instant integration that allows the user’s funds to be available instantly. Paxful offers purchase with a huge variety of payment methods.

Bisq is a P2P exchange network that uses a desktop application to connect sellers and buyers, the app is available for download on Windows/Mac/Linux operating systems. Bisq is probably the platform with the least volume between the three, but this doesn’t mean that it’s not a good one. The client offers a decentralized arbitration system and security deposits to protect traders. There is no KYC/AML needed and communication is routed over the Tor network. The client is still around the Beta phase, but overall it seems promising.

Regardless of which one you as a trader or investor go with it is important to realize that privacy is something that is sadly less available as we progress with Bitcoin and Digital Asset regulations, thus we need to support these projects in order to keep a diversified trading experience. If you know any more platform that are worth a mention feel free to let us know in the comment section!