Buying and Selling Ethereum with Cash Is Free on LocalEthereum as Platform Enacts No Fees
- LocalEthereum is offering free P2P trading until July 1st.
- The decision follows an announcement from LocalBitcoins, which has pulled their services from Iran.
Bitcoin and other cryptocurrencies have been changing the way that the payment remittance industry works, even though they have not quite picked up steam in countries like India, China, and Iran. These regions and others have almost no clarity in the way of regulations, which has caused some platforms to leave them alone entirely. LocalBitcoin.com notably decided to no longer service Iranian residence, and a circular was issued by the Central Bank of India to keep local banks from engaging with customers that choose to buy cryptocurrency.
LocalEthereum is taking a much different path. The Australia-based platform recently published a blog, which announced a historical development – they are not charging fees to customers to purchase or sell Ethereum. The blog points out the decision by LocalBitcoins to remove their cash-in-person offers “without any warning to its users.” LocalEthereum decided to eliminate their trading fee “in response” to the decision of the aforementioned platform, which is going to last until July 1st.
Much like LocalBitcoins, LocalEthereum offers P2P trading on Ethereum’s platform. However, Michael Foster of LocalEthereum stated that the LocalBitcoins withdrawal from the Iranian market had to do with “the new EU directive,” because it imposed regulations upon providers of custodial wallets. He added that “LocalEthereum is fully non-custodial,” which just means that they do not hold cryptocurrency or fiat currency for their users. Foster added that the ETH held in escrow is not even held by their platform.
This major decision by LocalEthereum will likely help with the mainstream adoption of cryptocurrency, considering that the fees in some regions can keep consumers from actually using it. An article by AmbCrypto added that Bitcoin’s recent bullish pattern has helped to move the market into a much more profitable place with tokens like Ethereum and Bitcoin Cash. However, that did not stop users from becoming worrisome that the transactions on the platform could create new risks of counterfeit currency. There are also concerns of in-person meetings with buyers.
One user on Reddit, Introspecter, called the P2P “cash-to-crypto” activities the
“last line of defense to a decentralized future.”
The user added that the work that LocalEthereum is doing to omit fees is worthy of
“a tremendous debt of gratitude.”