Why doesn't localbitcoin move to next level?

kittucrypt

sr. member

Activity: 300

Merit: 253

Ok Check!

Quote from: moni3z on April 19, 2014, 09:04:57 PM

Quote from: kittucrypt on April 19, 2014, 12:06:23 AM

there are plenty of cases of user frauds

Where are these cases?
If you sell your coins for something reversible that isn't cash in hand then you hold the escrow until the payment clears. It's your own fault if you release and it doesn't clear.

Quote

They don't monetize anything under 1 BTC in transaction.

What are you talking about there is no such 1 BTC minimum escrow amount

Quote

Neither do they have any KYC/user authentication methods.

Because they don't need to, you are trading with somebody else who is supposed to be doing KYC if it applies, in whatever country you are in. It's just an escrow and listings/ratings service to find local people to trade with.

A simple google search will lead you to many cases.
I never said there is a 1 BTC requirement for escrow. I said they don't monetize it.
They certainly dont HAVE to do KYC. when the onus is on each individual user, there is only so much that an individual can do.

moni3z

hero member

Activity: 899

Merit: 1002

Quote from: kittucrypt on April 19, 2014, 12:06:23 AM

there are plenty of cases of user frauds

Where are these cases?
If you sell your coins for something reversible that isn't cash in hand then you hold the escrow until the payment clears. It's your own fault if you release and it doesn't clear.

Quote

They don't monetize anything under 1 BTC in transaction.

What are you talking about there is no such 1 BTC minimum escrow amount

Quote

Neither do they have any KYC/user authentication methods.

Because they don't need to, you are trading with somebody else who is supposed to be doing KYC if it applies, in whatever country you are in. It's just an escrow and listings/ratings service to find local people to trade with.

kittucrypt

sr. member

Activity: 300

Merit: 253

Ok Check!

Quote from: leopard2 on April 19, 2014, 04:56:08 PM

KYC for online banking payments: a must-have
KYC for cash trades: a no-go

Why they don't do it, even though there is massive scamming with online payments? They get 1% for every trade that completes, even when the payment is fraudulent. That is then the sellers problem who get their bank accounts locked, charges filed for fraud or money laundering etc.

Just read their forums for nice horror stories.

I agree why people will not want to do KYC for Cash trades. Simply because that's how people conceal from Income Tax etc. KYC would mean an end to such transactions.

So if a seller/buyer is frauded, they still charge the fees? Do they take up any mediation at all?

Just because they get fees does not mean they let the fraudsters run amok. I have read a few stories and that's why I pondered over this question. If I were the admin, I would want my service more legitimate and trustworthy.

leopard2

legendary

Activity: 1372

Merit: 1014

KYC for online banking payments: a must-have
KYC for cash trades: a no-go

Why they don't do it, even though there is massive scamming with online payments? They get 1% for every trade that completes, even when the payment is fraudulent. That is then the sellers problem who get their bank accounts locked, charges filed for fraud or money laundering etc.

Just read their forums for nice horror stories.

kittucrypt

sr. member

Activity: 300

Merit: 253

Ok Check!

Localbitcoins provide a valuable support to the industry by matching buyers and sellers. However, there are plenty of cases of user frauds and mistrust. They don't monetize anything under 1 BTC in transaction. Neither do they have any KYC/user authentication methods.

Would you trade with them more often if they allow smaller transactions as escrow and have KYC in place to make users accountable for their trades?

I wonder if this is a gap in the current market? Or if there is a logical strong reason for them not to do this?

Why don't they move to next level? Is there a next level at all?

Topic: Why doesn't localbitcoin move to next level? (Read 580 times)