Topic: Will increasing banking restrictions lead to a rise in P2P transactions? (Read 245 times)

If those centralised exchanges can also freeze your funds, should you not be equally reluctant to use them to begin with?



If sanity had prevailed, people would have stopped using exchanges when Gox imploded.  The entire concept of recreating custodial banking services in Bitcoin is deeply flawed.  I find it completely insane that so many people readily abandon ownership for convenience.

If you saw someone standing on a street corner saying they'd hold onto your cash for you so you can trade some bits of paper with "IOU" written on them, you'd call the police, right?  Exact same setup on the internet?  Sign up thousands of users.  Go figure.  

I guess it's the usual reasons. The possibility of getting robbed or receiving fake bank notes fully or partially. You could also be followed home, which would reveal to scammers where you live. Luckily, I have only had positive examples with face-to-face deals, but I have heard horror stories that makes you think how smart it is to meet people you don't know, even in public. All I can say is, don't go unarmed and be willing to strike first if it comes to that.

Currently, my country is slowly adopting the use of crypto transactions, but still, they are using a third party to support the conversation of the crypto coins to fiat coins, but they are now widely accepting the use of crypto even as an act of payment but in limited stores, sooner or later if the government will see the potential on the use of it i guess possible they will adopt but takes a lot of due process with this decentralized feature.

Yes, this is something I'm personally predicting big time

People are starting to figure it out. Check out website kycnot.me

Most of crypto is just surveillance like fiat, so they can easily pin your identity to the blockchain & extort you

Problem is - if you coinjoin your BTC, most exchanges/swap sites will now deny your transactions

So you best buy it P2P at the very minimum or just use Monero

however Monero is being shadow-banned all over the place - which tells me they fear it the most. which makes me want to buy & use it more

You need to remember that I'm in England, and England is a special case. The current world order that evolved from the Knights Templar and the subsequent British Empire, is under threat. The UK is ruled through a different "country", and that is the City of London. This isn't the London controlled by the Mayor of London, but the financial empire known as the square mile. It has a public figurehead who is The Lord Mayor of London. It is estimated that up to 60% of the western world's assets are managed through the "Veil of Tiers" trusts administered by the City of London. This includes the banks, and they feel threatened by crypto that is outside their control. They are also weaponising banking. This evident in the way that they are destroying the dollar, and political punishments such as the de-banking of Nigel Farage and other political figures. The current restrictions are causing crypto exchanges to emigrate from the UK, and thus the government will lose the tax revenue from these businesses. Banks are closing accounts where payment are made to or from crypto exchanges. Tor doesn't help, as the banks will need full details to make the payments. Any attempts to conceal this will probably give rise to a charge of money laundering, and the subsequent confiscation of funds. Whilst I do not agree with much of the current UK government expenditure, I have no desire to attempt to evade the payment of legitimate taxes. However, I do want to keep my current bank accounts and payment services.

If I sell a domain name, then I can accept a peer to peer payment, and push the name via my registrar. I understand that there will be taxes due on the sale, but at no time does the transaction involve any banks if the purchaser already owns Bitcoin. I feel fairly safe when making a cash purchase in a Supermarket cafe. They all have massive numbers of video recording and facial recognition these days, so any attempted robbery would be recorded on video. That raises the question of government access to those video tapes, and that may be something to consider for the future.

Actually he's right, you can read this https://www.charltonbaker.co.uk/news-blog/banking-and-crypto

It's true even though Bitcoin is legal in Western countries and they recently approve Bitcoin ETFs, but strangely the banks still not want to accept Bitcoin.

Well, that's actually what he looking for. The banks only know other people send him money and have no idea what actually he doing. If the bank officer ask him about the funds, he need to prepare about that and provide the evidences.

To answer the question in the title; it definitely will.

In the country where I live, the government and banks are all against cryptocurrencies, and even though there are no clear rules about it like being illegal or anything, they don't allow you to make transactions that are associated with cryptocurrencies, and if they find you doing that, your account will be frozen and your funds will be confiscated. They will ask you to provide proof of the payments and they will only accept the proofs if they find them satisfactory, otherwise, they won't unfreeze your account or release your funds.

So, what we do to either buy or sell our cryptocurrencies against the local currency is use P2P platforms where local merchants will send or receive the funds and then you get or release the assets for them. In this way, the transactions being made between us and the merchants are considered normal transactions and aren't marked as transactions being connected with cryptocurrencies.

Platforms such as Binance would even warn you not to mention anything related to cryptocurrencies anywhere when making a transaction to avoid problems when using the P2P platform.

It doesn't ends there, people can't even tell the difference between centralized and decentralised crypto platforms this days, when a platform overs a P2P service they go ahead and start using the platform, my point is not all peer to peer platform are to be used, what is the use for P2P when they ask you to pass KYC verification?



Privacy isn't even a thing here, if a peer to peer platform can bring convenience to their users without asking for any verification then its all we wanted, banking restrictions won't indeed increase P2P transaction, because too many people are fine with centralized entities even while Bitcoin is a decentralised digital coin.

Many people in crypto space still use and trust centralized exchange today, for their own reasons that I don't get, even after all the hacks and rugpull from different centralized exchanges in the past, why haven't people abandoned centralized exchange? The convienece of using a centralized exchange I guess, and some will say its because centralized exchanges are best for trading and volume wise.

People have their rights to choose and I bet that they will choose to use KYC platforms over decentralised or P2P platforms.

Who is stopping you to use exchanges? Are crypto exchanges like Coinbase or Binance banned in any big western country? I don't think so.
Many people keep talking that Bitcoin/crypto is widely adopted by more banks, companies and individuals and at the same time, people like you claim that banks are blocking accounts, that were involved in crypto trading. Am I missing something? You need a bank account for P2P transactions as well. The only difference is that your bank doesn't know that you are doing fiat-crypto transactions.
Crypto regulations will keep pushing forward and the governments would want to achieve complete control over the crypto industry. Maybe soon we will have to declare our hardware wallets to the tax authorities, but I'm sure that the crypto fanatics will find a way around this.

P2P transaction government cannot monitor it because it is something that deal with the individual and for government to track it and they restrict it I think it will be very difficult for them it is only the backing system I know quite well that government can restrict their transaction through bank transfer which means that it is the bank that will be crediting for any transaction that is being done, in my country there is a restriction of bank transaction that has to do with the cryptocurrency, but in p2p it cannot be restricted from my perspective.

As users are trading crypto assets worth tens of billions of USD and generating millions of USD in revenue each day for CEXs, traditional banks are not receiving any benefits. I think they cannot be satisfied with that, they want to participate to share this market share rather than destroy the crypto market.

In many countries, when banks do not support crypto-related transactions, the liquidity of the crypto market in that country is seriously reduced, meaning that investors buy and sell crypto under more difficult conditions. This is not good for the development of the market. I believe that traditional banks will soon support crypto-related services to generate revenue in the form of transaction fees or management fees. The same is true for governments: they will manage to collect taxes from crypto instead of trying to destroy crypto.

Aside the risk with face to face p2p  deals other methods of p2p that could be secured enough is and still remains the best option to stay decentralised and not involved the bank directly, this has been what the situation is here in my region, government ban direct bank transfers for cryptocurrency buying or selling.


But the p2p market becomes the only option that is readily available with some form of privacy,but not on a face to face model.

This campaign of banks avoiding crypto transactions aren't only in those locations alone, Nigeria has followed the bad wagons and has instructed Banks to closed down any banks associated with crypto transactions. I specifically had some issues with my bank and I was given a form to fill and I saw an option that ask if I do crypto and online gambling. The option specifically stated due to Central Bank new reviews on cracked down cryptk activities, they have the right to close down my accounts and I just select NO because even if I do, they don't expect me to admit.

P2P transactions are actually on the increased but then again to show you that Nigerian government is not playing around with crypto transactions, they have force Binance to take down P2P for Nigerians and NGN other trading pairs. They have also ban Binance from web and other crypto exchanges like Kucoin, crypto dot com, and Coinbase including Blockchain Explorer, the government is sick to be sincere.

With all these campaigns and ban, most crypto traders are now used to sending crypto funds through banks and yet no one will ever know about it because they don't include crypto in the transaction reference, what they do is just to add the sender name and everything is good to go.

My country is very crypto-friendly, so I have never had a problem with being associated with crypto and I have been using local CEX (sorry, I know it's a very bad practice but I need it) for years without a problem but I have a question about P2P payments. If I exchange crypto via P2P payments frequently, won't I be in trouble if I receive fiat from strange persons? What if any of my internet P2P partners does something illegal? I am personally afraid of that and that's why I hesitate to do P2P trades.
I think that we will have more official and regulated exchanges in the near future and P2P transactions won't be on rise but this might be individual to each country.

You have not given your reasons why you don't like face to face trading of cryptocurrency and from the op explanation and the countries.he mentioned, restricting or freezing Bank accounts that are links to cryptocurrency related transaction. So with that face to face and crypto to crypto transaction will be the best. Then you can also trade with someone account which the op mentioned. And I don't see any dangerous in face to face trading with a friend or someone you know. And you don't have to trade with someone you don't know.

When my country Central Bank, asked all the commerical Banks to freeze any account that was connected to cryptocurrency, people diverted to face to face and well knowing people for trading. And the matter what exchanges are good avenue for trading.

Well P2P transactions are not the future. No matter how we want it to be, but government eventually will put a lot of restrictions on that. Banking institutions are freezing accounts all over the world for P2P transactions as well. However, if there's a licensed exchange in that country, the transactions will be safe. But you won't be able to avoid tax on that.

I believe, P2P transactions are here to stay but we need to be very very careful before we initiate a transaction and need to verify the details of the other party in order to stay safe. A lot of crime proceedings are also mixed in the P2P trading.

We will see, luckily, P2P cannot be stopped, so we can rest assured

The problem is not seen now.  It will be more evident in the future.  As Pmalek says, we are moving toward a Cash less society.  This will bring all sorts of problems, including about the usage of Cryptocurrency.  And including the websites you say you are trusting right now, as they will likely not close an eye to smaller Transactions any more.  It happened almost everywhere in the world.  I hope it does not happen to you, but I really doubt it will not.

We had a lot of ATMs which never asked for Know Your Customer.  Good luck finding one now, because it is getting impossible.  We could register onto Centralized Exchanges and deposit, trade and withdraw freely, with no required personal identification.  Now good luck finding a reputable one that will not ask you for an ID.  Because this is getting impossible too.

Cash payment limits are low enough that they become inconvenient and people rather put their money on their Bank account instead so they bypass the limits.  You bypass the limit, but by kneeling to control and Surveillance.

What I see is that barter will be the only solution in such a world.  I give you Bitcoin, you give me bread.  Of course this means more possibilities of getting scammed out and such, but if that is the only remaining alternative what can you do besides risking it or kneeling to the stupid restrictions.

Thankfully, banks are very chill in my country (about pretty much everything up to a certain financial threshold), and dealing with cryptos is very common, so such things aren't common in my country. Moreover, people often use platforms where you just make a transaction after placing an order, but don't keep your money on the platform. The platforms are still centralized, but they have a lot of reviews and since you're only risking the money for one transaction, they are convenient.
Trusting individuals is sometimes more difficult than trusting a website that specializes in a certain activity and has a lot of positive reviews, so I'm not sure that it the future.

If you live in a country where you can get you bank account frozen or closed because of an association with bitcoin or crypto, then make sure you don't give them a reason to make you bankless. P2P transactions are fine. It's just one person sending to another one for any reason. Come up with a story why you are receiving/sending the money and agree with the other party about what to write as reason for payment.

Even better, try to create or join a network of buyers and sellers in your area who meet face to face. That way you can get the job done immediately.

There is a different problem. We are moving towards a cashless world. Many countries are already cashless and function entirely on debit/credit card payments and mobile payment apps. In 10 or 20 years, it's going to become harder, if not impossible, to get cash without everyone knowing about it.   

I watched a video from Australia yesterday where a woman was complaining that her bank no longer holds any cash at all. It's all digital now. She wanted to withdraw some cash from her account, but was told by the bank clerks that they can't help her. They even suggested that she should transfer her money to a different bank and request cash withdrawals there. She did. Fcuk this world!