Minnesota Among States Where LocalBitcoins Is Terminating Service

Affected accounts on LocalBitcoins will be closed February 9th, 2021. Withdraw (or sell) your BTC, if you have a LocalBitcoins account!

LocalBitcoins announcement disclosing the 10 states they will continue doing business in

An article on the online news site BeInCrypto describes how “only 10 states will continue to receive support from the platform”. Those states are:

  • Illinois
  • Kansas
  • Montana
  • New Hampshire
  • New Jersey
  • Pennsylvania
  • Tennessee
  • Texas
  • Virginia
  • Wisconsin

The message in the photo above was sent via e-mail to LocalBitcoin’s customers. There was also confirmation via a Tweet:

LocalBitcoins, the first widely used P2P bitcoin trading platform previously had for years remained the largest (by trading volume). However after imposing mandatory identity verification / KYC requirements a couple years ago, their trading volume has since dropped off significantly, and LocalBitcoins volume now ranks in second place, with Paxful taking the lead. The following weekly BTC/USD P2P trading volume chart from UsefulTulips shows this.

The dramatic shift in volume from LocalBitcoins to Paxful

U.S.-based Paxful has been seeing volume shift away as well after they too began requireing identity verification / KYC for much of their customer base.

Fortunately there are numerous No-KYC P2P trading platforms where identity verification / KYC is not required, and their volumes are growing as a result of defections — first from those leaving LocalBitcoins, and now from those leaving Paxful as well.

A comprehensive list of P2P trading platforms can be found on this post elsewhere on Medium.

Some of those No-KYC P2P trading platforms are also Non-Custodial (e.g., LocalCryptos, LocalCoinSwap, and Bisq). HodlHodl is both No-KYC and Non-Custodial however they currently have a geofence restricting access for those in the United States.

Due to numerous battles with Twitter in which the MinnFinTech Twitter account was “Temporarily Restricted” (i.e., Locked, requiring phone re-verification) — multiple times, and suspended at least once, that Twitter account has been (and will remain) abandoned.

Done Playing Stupid Games With Big Tech

Going forward, MinnFinTech’s social media presence is @MinnFinTech@Mstdn.Social and uses the decentralized social media network Mastodon. Incidentally, one of the largest Mastodon network hosts is the BitcoinHackers.org Mastodon server.

Curating FinTech developments in Minnesota.