Topic: Will increasing banking restrictions lead to a rise in P2P transactions? - page 2. (Read 284 times)

Yes.  And no.

Applying restrictions to Cryptocurrencies is a smart move.  It does two things.  It keeps the sheep under control while the rest of the people who contemplate avoiding the rules will have an instilled fear of avoiding them.

Before, it was easier.  Since there were no regulations, you never had a fear such as the Government finding out about you avoiding them.  Now, things are different.  The people who will continue to avoid the rules will be an amount negligible enough for the Government not to care.  What is important is not losing control over the mass.

Now for your situation, things are simple.  Banks freeze accounts for fiddling with Cryptocurrencies?  Just start moving Cryptocurrency with out the need for Banks, which is how Cryptocurrency was supposed to be used anyway.

But the situation is much more complicated in other cases.  For example.  Cash restrictions are increasing every few years in Europe.  Considering the increased limits on Cash Transactions in the past decade, I can safely assume the limit will be either so low it will become a HUGE burden to pay with Cash, which is pretty much obliging us all to use Card instead, or the limit will simply become inexistent for the same reasons they are now increasing limits.  Fraud, Money Laundering et cetera, which the politicians mostly do, and not the regular citizens like us.

That is where the real struggle begins.  How do you sell your Cryptocurrency earnings while avoiding Banks if Cash Transactions are limited to 1,000 Euros and Banks freeze Cryptocurrency related accounts?  If you have 10,000 Euros in your Bitcoin Wallet and decide to sell it all, do you meet 10 separate people to exchange it all up to the limit?  Do you meet one single guy to silently exchange over the limits?  What do you do?

They are smart by doing this all and they know it slowly becomes a burden and a very uncomfortable fence for all of us, forcing us to both use Banks and to stop using Cryptocurrency altogether.

I do not see many people continuing to risk once more restrictions are applied.  Even meeting a single person face to face to exchange small amounts of Bitcoin is risky enough, and from all people I know, which is a few hundred, I doubt I could find even 10 who would take the risk.

I do have people, family members in the UK and US that are into crypto investment, they have their bank account up and running but they have never get their bank account blocked because they interact with a crypto exchange or crypto in general.

Maybe those who ended in such mess make some mistakes or something? But still I understand what you are trying to say, I will rather rely on P2P platforms too, but it's no more a new thing.

P2P platforms have been around for years now, but it depends on if someone really want to start using them or not, many people still don't have a reason to start using P2P till today, but for those who need it, they will surely find it if they want.

What I want to see happen, is that decentralised exchanges must practice decentralisation and stay on this forever, the SEC are going after Uniswap now, and I am not surprised, because Uniswap used to claim that its decentralised until some time ago where they start operating in a centralized way.

This post made me reflect back to how we were facing so much challenges within our country even till now it hasn't been resolved, we aren't permitted to buy cryptocurrency with our Debit card from bank hence we all switched to using p2p till date and like seriously that has been the best way to buy bitcoin and not by person to person. This is more risky to say because you won't know what the person may holds for you, instead p2p is more better just trade with a verified users and if you aren't trusting the person you can go bit by bit to executes the total bitcoin you wanna buy provided no cryptocurrency words will be associated while doing your bank transfer to either buyer or sell.

It is a fact that people will rather go for convenient transactions on centralized exchanges where they'll have to provide KYC, instead of p2p transactions where their privacy is kept from centralized authorities like their governments. So bank restrictions will only make the exchanges services to become more sought after and they'll become richer because they minimize crypto transaction scams, which is on the increase. I personally don't mind doing p2p transactions, but you'll only feel comfortable when it's with a trusted person, it's very risky to do p2p transactions with a person that is not familiar with you, because if you send your Bitcoin, then the person doesn't send fiat into your bank account, there's really no way of tracking the owner of the wallet address.

I don't understand why you treat Bitcoin as non fungible? Bitcoin is a currency, currency is fungible, every satoshi is same, similar to every dollar is same. As long as you didn't interact with the "criminals", you're not supporting them. If you get asked to provide the source, you can just pointed out you're using P2P platform, that's it.

If you afraid you get the money from criminals, probably you need to find out people who had used your dollars.

Anything is of possibility at these times. It could be how they react because it's known that we're entering into the bull run so that's a way for them to at least get some control. But, no matter what they do, each of us will still find a way to transact and deal even without the intervention of the traditional processes that we've used to do.

All that you've mentioned Jet are the choices that all of us have got, the p2p platforms you know can also be dealt into scrutiny by the government. It's every platform now that can be questioned by them.

If there are some merchants and OTC platforms that are a separate entity from the banking industry, you'd go for them. But just as how dangerous the meeting in person, you'll never know if some punks are surrounding to that area trying to look for the bitcoin folks that they always thought of having the money and rich.

Everyone I knew are using P2P transactions today but the face to face way of selling Bitcoin is too dangerous, do not engage in such transactions and do not advice anyone to do the same, it is very dangerous.

P2P is not even a true P2P today, you need to make sure that the platform thats providing this P2P service is not a centralized exchange like Binance and others, where Data and KYC verifications are been saved and can be leaked at any time to the government if they are asked to provide this information.

A true P2P platform will never ask you for any sensitive information, like identity details or location and addresses, if the banks are blocking their citizens then it might be the time for people to start using P2P  and also learn the difference too.

Make sure you avoid bad P2P platforms, many are centralized, avoid them.

It seems like we really need to exclude banks in our overall crypto transactions because this won't look good for us if we don't start to adopt new means of trading our bitcoins in the future because they are developing some strategy to further compress our freedom in the crypto industry. Just because we often use banks every time we cash out our bitcoins, they found a way to restrict us and now that they see it work perfectly for them, they will continue to further regulate more laws in order to make us follow whatever they want concerning our bitcoins.

There’s no surprise that exchanges are getting regulated if it is a centralized one. As we all know centralized exchanges usually asks for their clients’ kyc and they have actual access on to your funds. This means that if they deem something suspicious they can prevent you from making any transactions.

This goes of course with banks. You can never expect decentralization with banks no matter what hoops and loops you go through. Just use decentralized exchanges and you should feel safe and confident that your account won’t be frozen all of a sudden.

"Blessing in disguise". I would like to hope that these events will push the development of the crypto sphere back on the right track, otherwise these centralized exchanges turned out to be overly influential, which is not at all beneficial for decentralization.

This can't help but worry. But this may be the beginning of a trend change (avoiding exchangers) towards P2P.

Like at the dawn of the era of bitcoin? I didn’t notice the abundance of users on Bisq. Maybe account freezes will have a beneficial effect on their user base?

From the point of view of the “purity” of the transaction without traces, “cash payments in a face-to-face meeting” looks the best, but there are concerns about who might come to the deal? An armed robber out to pick your pockets, or a peace officer out to arrest you (if crypto is illegal in your country). In some cases, this may be the same person.

A "bank transfer to a trusted person's personal account" can also be blocked, right?

I would prefer exchangers, but without KYC. Is such a future possible? It seems to me that no.

It seems to me that this cannot be regulated: an anonymous address (token #1) sent to another anonymous address (token #2). But what’s the point of this if you can’t buy much in the physical world with either token #1 or token #2? This will require money from the traditional monetary system.

Decentralization is wonderful and any problem that arises always forces us to look for solutions. I would like it to be the same in this case. Because of this, the problem that has arisen will push the crypto community to create new (or improve old) convenient P2P exchange platforms.

I doubt P2P and DEX is popular choice, especially due to low volume and worse exchange rate. In addition, U.S. treasury recently also share their finding that cryptocurrency is rarely used by such group[1].

[1] https://beincrypto.com/us-treasury-clears-crypto-terrorism-financing/.

I do not like face to face trading or transaction too because I see that there can be some dangers in it especially if you are not comfortable with the business environment where the trade is ongoing, physical trading and transaction can be a bit risky. I also won't like the idea of cash transactions or trades too because of the insecurity that comes with it most especially when the persons involved are unfamiliar with another.


I do not know why government is strongly working against the P2P exchanges within the cryptocurrencies community in a decentralized system. Will the reason be the government's interest to continue to control the financial sector within the crypto platforms which has been impossible to achieve or what exactly

I never tried any of them that’s why I made it clear, but Bisq is mostly recommended here in the forum I can see so many forum users are making good reference to the exchange.

On carrying your trusted people along; I think it is a good idea but stressful, and there is no privacy in it again since you have to take people along to make sure you are also safe.
Nevertheless, it is safer than exposing your privacy in CEXs.

Problem is you don't know what kind of laundry the p2p provider is involved in. If they also work for Hamas.

Many people are used with CEX, so i don't expect there'll major rise in P2P trading. It's more likely people will try to create bank account on different bank or even off-shore bank which doesn't forbid cryptocurrency-related transaction.


Some P2P/DEX such as Bisq require deposit to reduce scam possibility. As for physical or face to face P2P, you also could reduce the risk by bringing people you could trust.

It will force you on to a regulated exchanges and make you consider your old invest to be play money.

Second round is laundry! Hence the ETF's.

Peer to peer is good and will be the best if any form of scam can be avoided which is not possible.
Face to face peer to peer is very risky because one can be set on trap and can be rubbed all because of trust. On the other hand, one can also be scammed if there is not a trusted person to stand as a middleman to make sure the transaction is done with any cheat because people can be funny at times, they can decide to go away with people’s money because they are anonymous.

I like exchanges p2p because the exchanges are the excro to make sure there is no scam in any end, but I never tried any decentralized p2p so I don’t more about that, but I feel more safer with CEX p2p.

Will increasing banking restrictions lead to a rise in P2P transactions?

Definitely. This same situation played out in Nigeria sometime 2 years ago, IIRC. The government baned banks from directly getting involved with Crypto transactions, so you could not fund your exchange wallet directly from the bank of withdraw directly to it as you could do before. After banks were restricted there was a sharp rise in P2P transactions and the Nigerian market quickly became one of the largest for P2P services.

Same scenario will play out anywhere else that has ardent Bitcoin users. Only the threat of government intervention in many places already grows the P2P market.

The truth is, alot of these government are scared of what might happen to their economic status if they accept or legalize crypto. Similar to what happened in my country Nigeria months ago, when our currency had depreciated alot towards the dollar. The government started raising fingers and began a race and fought back against crypto and crypto exchanges claiming that they were the cause of sudden fall of naira. Few months before all those drama, they had said to have removed the restrictions they placed on banks as regards crypto then suddenly they had another reason to fight against it.

From what we saw just few weeks after the fight against crypto exchanges, our local currency gained a lot of value once more. So we can't actually blame the government of such countries, they might be right to some extent. But if they are able to regulate crypto and probably assume to work together,  It will cause a major flaw in the main idea about decentralization which many crypto like Bitcoin was initially created for.

Peer to Peer transactions and trades are good for privacy but people will need to have deep knowledge on how this trade type works and how scammers can exploit it to scam naive newbies.

It is for everyone to use but with newbies, they will need to be very strong mentally to avoid any pressure from scammers to release coins and so on.

Most of people will choose convenience than privacy and if it is not mandatory, no other choices available, they will choose things that can bring convenience, not privacy. I don't expect banking restrictions will increase P2P transactions too much.