Topic: Will increasing banking restrictions lead to a rise in P2P transactions? - page 2. (Read 450 times)

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!

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/.