Banks Governments and Cryptocurrency Exchange Verifications
The growth of the cryptocurrency ecosystem in 2017 frightened banks and regulations entirely. Before the end of the year 2017, the total cryptocurrency market capitalization grew to 700million dollars. This is owing to the mass adoption of the cryptocurrency and blockchain technology. All of these couldn’t have happened if not because of the immense advantages that the crypto verse (cryptocurrency universe) presents to the general public. The increase in market capitalization of the cryptocurrencies meant a decrease in the funds circulating in banks. Banks warned many of their customers to stay away from the cryptocurrency ecosystem. Government regulations became harsh against the cryptocurrency growth because the cryptocurrency ecosystem was designed to be decentralized without regulations. For this reason, anyone who held an asset in the cryptocurrency world and wishes to convert to the fiat currency had a lot of challenges with regulations (majorly money laundering). This has caused the closure of many cryptocurrency and exchange wallets for non-compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. KYC and AML existed as a means to keep the cryptocurrency in check and under the governments. Now, before you can register or trade on any cryptocurrency exchange sites, you have to pass KYC and AML by submitting a lot of documents and passports to confirm your identity. The confirmations in many cases can take days to weeks and in some cases ineligibility.
I can remember the rigor I went through on a cryptocurrency exchange website (name withheld) before I could trade with them. Most of the times the documents I uploaded were not accepted for a lot of reasons. Another exchange deliberately closed registration for new members. I wonder what people without necessary document will go through trying to use the blockchain to profit. Definitely, the present cryptocurrency exchange age does not support them
Cryptocurrency Exchanges to Fiat Currencies
As at present, users who wish to convert funds from fiat (local currencies) currencies to the desired cryptocurrency which is not mainstream (popular) have to go through a lot of complexities of transferring funds from one marketplace to the other. From fiat, the user has to convert to a mainstream cryptocurrency (like bitcoin, etherium, etc.), then move the coin to another marketplace to convert to the desired token. The same process is faced when a user wishes to convert his desired token, which is not mainstream, to fiat. All of these processes and movements of funds from a marketplace to another significantly reduce the value of the funds transferred as transaction fee is charged on every movement (transaction fees are charged on transfer of funds in and out of each marketplace), not only this, but it takes a lot of time to complete.
LocalCoinSwap (LCS) is a decentralised marketplace which allows buyers and sellers to trade directly in any cryptocurrency using any method of payment. LocalCoinSwap provides a safe, uncomplicated and fast peer-to-peer (P2P) trading platform, allowing users to freely exchange without unnecessary verification requirements or waiting times. The platform utilizes a secure escrow system that solves the inherent trust issues of online P2P trading.
LocalCoinSwap allows peer-to-peer (p2p) trading of all coins (tokens) even if they are not mainstream no matter the geographical location. Fiat can be directly converted to the desired cryptocurrency and vice versa through p2p trading on the platform. This will cut the many transaction costs charged for moving funds from on exchange to the other and reduce the time it takes to complete a successful transaction.
The LocalCoinSwap infrastructure will close this gap in the market, not only by offering a P2P exchange for all cryptocurrencies but by also tokenizing ownership of the exchange itself into the hands of its users through the world-first Cryptoshare system.
The LCS crypt0oshare system leverages the blockchain technology to replace the traditional company ownership through shares. The platform put the governing back into the hands of the token holders as community members or token holders participate in decision making through voting. Token holders receive dividends from time-to-time for the cryptoshare (token) they hold. The platform, being on the blockchain, will further promote transparency since all transactions made on the blockchain cannot be hidden, reversed or altered. All (100%) profits are distributed via the smart contracts on the platform to all token holders. The dividends are paid in all tokens from which profits are made on the platform. This gives LCS token holders a fair share of ALL tokens traded on the platform.
The token holders on the platform also enjoy airdrops of all ICOs launched on the platform.
LocalCoinSwap Exchange Verification
LocalCoinSwap does not require an identity verification to be able to effectively use the platform and have access to all features on the platform. This means that all can trade on the platform opening up a world of great opportunities for those who are deemed unfit for traditional financial services because they do not have necessary documents. It also cut the time it takes to confirm the identity of users since there will be no identity verifications.
When a seller wishes to sell the desired cryptocurrency for fiat, the cryptocurrency is held on the platform until the fiat is directly transferred to the seller from the buyer. When the seller confirms that the fiat has been paid, the cryptocurrency is released to the buyer. There is a time limit for the completion of trade because of constant change in the price of cryptocurrency. In case of dispute, the escrow is paused until all necessary documents for the confirmations and resolution of disputes are uploaded to the platform for resolution. Buyers and sellers can leave feedback for a particular transaction.
For further information on LocalCoinSwap, you can read:
Thanks for reading, I am @ayobami99. You can also reach me on bitcointalk: https://bitcointalk.org/index.php?action=profile;u=1848386;sa=summary
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Woah, this is a more convenient and quick way of transaction.
Great article, i choose to invest in altcoins too!