Nelson Minier, head of over-the-counter trading at cryptocurrency exchange Kraken, says its volume has increased twenty-fold since 2018.
Nelson Minier, head of over-the-counter (OTC) trading at major cryptocurrency platform Kraken, has stated that the OTC desk’s trades per month have increased by a factor of 20 since the beginning of last year.
Minier gave his remarks in an episode of The Block’s podcast, The Scoop, on Aug. 20. Minier further remarked that “Bitcoin and Ether are the big — the whales of our desk,” additionally estimating that Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Monero (XMR), and Tether (USDT) were the top five cryptocurrencies traded by volume.
Minier also gave his projections on BTC price, saying:
“I don’t see demand for this asset going down. But I do know that supply is gonna get cut in half, some time May 2019. And I think another thing I know about Bitcoin is that higher price is the best marketing tool we have.”
Kraken’s lawsuit regarding OTC location
In April, former Kraken employee Jonathan Silverman sued the platform for upwards of $900,000. Silverman reportedly managed Kraken’s trading desk in New York, but was not compensated in accordance with an oral agreement with Jesse Powell, Kraken’s founder. Silverman additionally specified that Kraken was lying about not operating in New York. In his lawsuit, Silverman said:
“Misrepresenting to the public and government regulators that it was not operating in New York; when in reality, Kraken’s OTC practice, and OTC trading (including logging into the Kraken exchange and negotiating wire transfers) occurred almost exclusively in New York.”
However, a spokesperson for Kraken, Christina Vee, retorted that Silverman was “both lying and in breach of his confidentiality agreement.”
Kraken’s website troubles
As previously reported by Cointelegraph, Kraken has recently seen some troubles with its website and application programming interface (API). On Aug. 13, Kraken announced on Twitter that it was receiving reports of connection issues, both for the site as well as its API.
The head of Circle’s over-the-counter trading desk has resigned and an in-house trader will reportedly fill his vacancy.
Daniel Matuszewski, head of over-the-counter (OTC) trading at the money transfer and BitLicensed crypto trading company Circle, has resigned.
The Block reported news of Matuszewski’s departure on August 2. He apparently said that he was resigning to pursue a “brand new entrepreneurial opportunity in crypto.”
According to the report, an anonymous source has said that Nick Gustafson will be entering Matuszewski’s prior role. Gustafson previously worked as a trader at cryptocurrency exchange Kraken’s OTC unit, and appears to have worked as a trader at Circle for a little over a year, according to his LinkedIn profile.
Circle’s OTC Department
As previously explained by Cointelegraph, OTC trading may be an attractive option to crypto investors. In addition to Circle, crypto platforms like Coinbase and Binance have opened OTC desks, and did so in the middle of crypto winter no less. OTC desks allow traders to transact directly with each other, which can be especially important for companies that can’t comply with the listing requirements for traditional exchanges.
In January, Circle said its OTC trades had a notional volume of $24 billion in 2018, and was only expecting volume to go up this year:
“This year, we anticipate further incremental growth in institutional adoption catalyzed by stablecoin usage, advancements in institutional custody solutions, increasing regulatory clarity particularly in the [United States], and improvements and innovation in core crypto infrastructure.”
Projected future of crypto regulation
As reported by Cointelegraph, Circle CEO Jeremy Allaire recently said that he thinks the United States will implement crypto regulation as a check on overseas companies. According to Allaire, there is an increasing number of digital asset projects being developed outside the U.S., with American companies also migrating elsewhere to boot. As a result of this, he conjectured:
“I think it is ultimately going to lead to, ultimately legislative initiatives to try and ensure that there are appropriate safeguards and investor protections but also clarity, which is much needed to allow the technology and industry to flourish.”
The U.S. SEC and FINRA have issued a statement on regulatory compliance issues for crypto custodians.
The United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) outlined regulatory compliance issues for cryptocurrency custodians in an announcement on July 8.
According to the joint statement, the organizations have yet to discover a set of circumstances in which a crypto custodian could comply with the SEC’s Customer Protection Rule, which is described as follows:
“Put simply, the Customer Protection Rule requires broker-dealers to safeguard customer assets and to keep customer assets separate from the firm’s assets, thus increasing the likelihood that customers’ securities and cash can be returned to them in the event of the broker-dealer’s failure.”
The report further claims that a crypto custody service may not be able to sufficiently demonstrate that it actually controls the assets it purports to hold.
The SEC and FINRA discuss how simply holding a private key, for instance, is not sufficient to demonstrate ownership of crypto. They say that another party could have a copy of the private key, and thus perform transactions that the custodian did not approve.
Furthermore, if such a transaction were performed, the custodian would not be able — at least not in virtue of holding a private key — to reverse it. This would also apply more generally to any transactions that the custodian might desire to cancel or reverse, as per the statement.
In addition to addressing custodial services, the report also touches on issues for registering noncustodial services such as over-the-counter (OTC) platforms and broker-dealer transactions more broadly. Other areas of compliance concerns include bookkeeping policies and liquidation via the Securities Investor Protection Act.
The SEC and FINRA previously scheduled a broker-dealer meeting in Chicago for June 27 to discuss crypto. The meeting was intended to cover “regulatory hot topics” including cybersecurity and digital assets.
As previously reported by Cointelegraph, the SEC requested feedback in March on how it might regulate crypto settlements. The SEC also was interested in the role of custodians in non-delivery versus payment trading and what safeguards are currently in place.
Grayscale Investments announced that its latest security, Grayscale Ethereum Trust, is open for trading on OTC Markets.
Grayscale’s Ethereum-based security, Grayscale Ethereum Trust (ETHE), is available for trading on OTC Markets, according to an official blog post from Grayscale Investments on June 20.
According to the post, ETHE is “an open-ended trust that holds Ethereum.” As further noted, this is a means of investing in Ethereum without having to actually hold the cryptocurrency. This means that the “first U.S.-based publicly quoted security solely invested in and deriving value from the price of Ethereum is available.”
Grayscale’s Director of Investments and Research Matt Beck commented on how investing in Ethereum can help investors build a profitable portfolio, saying:
“Cryptocurrencies — such as Ethereum — offer exposure to a unique set of market opportunities and risks that are uncorrelated to traditional assets. As a result, they can further diversify modern portfolios, enhancing returns per unit of risk (when positions are sized appropriately and maintained over long investment horizons).”
This closely mirrors CEO of Morgan Creek Capital Mark Yusko’s statement in May, in which he implored investors to hold bitcoin (BTC) due to its low correlation and high diversification.
Grayscale Investments, the United States-based investment firm behind ETHE, also offers a trust for bitcoin — Grayscale Bitcoin Trust — as well as trusts for the cryptocurrencies Ripple (XRP), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC), Stellar Lumens (XLM), Zcash (ZEC), and Horizen (ZEN).
As previously reported by Cointelegraph, Grayscale got the green light to trade ETHE via OTC markets in May from the Financial Industry Regulatory Authority (FINRA), a not-for-profit regulator authorized by Congress.
However, Grayscale notes in its disclaimer that the trusts are not registered with the major American governmental watchdog, the Securities and Exchange Commission (SEC):
“The Products are NOT registered with the Securities and Exchange Commission (“SEC”) or any other regulatory agency in any jurisdiction, and are NOT subject to the same regulatory requirements as SEC-registered exchange traded funds or mutual funds […] The Offered Products are being offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act. As a result, the shares of each Offered Product are restricted and subject to significant limitations on resales and transfers.”
According to the report, Galaxy Digital’s new initiative is made in response to increasing demand from institutional investors in order to hedge the high volatility that is a calling card of crypto assets.
Bitcoin (BTC) options are a type of crypto derivative that are a wide-spread method of profiting from a highly volatile market by strategically hedging risks such as reducing portfolio risks, and in turn, losses from trading. Similar to traditional finance, there are two types of crypto options that can be bought — call options and put options. Respectively, these translate to right to purchase and right to sell the holding at the determined price.
Yoshi Nakamura, global head of business development at Galaxy Digital, reportedly claimed that crypto-related businesses such as mining firms and lenders have been expressing more interest to crypto options recently. However, the executive declined to reveal specific numbers about growth of the business, adding that Galaxy’s crypto options business is “relatively new.”
According to an executive from crypto investment firm BlockTower Capital, the demand for crypto options has been increasing indeed, which is primarily driven by non-crypto firms.
According to the report, Galaxy is not the only firm in offering crypto options, with the service being reportedly supported by over-the-counter (OTC) trading operators such as Akuna Capital and Cumberland, the Chicago-based cryptocurrency trading unit of DRW Holdings LLC.
As reported earlier today, high volatility is the biggest reason people give up on cryptocurrencies, accounting for 31% of answers from those polled as to why they stopped using crypto.
Meanwhile, BTC futures, which is another type of crypto derivatives, have briefly broken $10,000 mark today on the Chicago Mercantile Exchange’s (CME).
Speculation remains over whether Jihan Wu will serve as chairman or CEO of Matrix, the upcoming crypto services startup.
Ex-Bitmain CEO Jihan Wu could launch his newest venture next month, according to a report by The Block on June 5.
One unnamed source told the website that the crypto services startup, called Matrix, “will be the biggest over-the-counter (OTC) desk and asset manager overnight.”
Matrix’s OTC offering is likely to be boosted by its close ties to bitcoin (BTC) mining company, Bitmain. The new business will reportedly offer custody and lending services to the Beijing-based giant, receiving a liquid pool in return.
Another of the four unnamed sources told The Block that such high levels of liquidity could result in lower crypto prices, giving Matrix a competitive advantage in Asia.
The Block notes that speculation remains over whether Wu will serve as chairman or CEO of the new company — as well as over whether Matrix would be allowed to operate in China, which has a history of clamping down on the cryptocurrency industry and crypto trading.
Last November, Wu was reportedly demoted from being a “director” at Bitmain to a “supervisor.”
Bitmain is one of the biggest players in the cryptocurrency industry due to its huge mining capabilities, and Wu continues to hold a 20.5% stake in the business.
The highly anticipated Local.Bitcoin.com is now available to the general public. As of right now, anyone in the world can use the service to trade bitcoin cash (BCH) securely. Since pre-launch signups were announced last month, thousands of traders have created accounts and there are over 2,200 active offers ready to go.
Local.Bitcoin.com: Prepare to Trade Bitcoin Cash Peer-to-Peer
The Bitcoin.com team has been busy preparing for the launch of our private, peer-to-peer trading platform for the BCH community called Local.Bitcoin.com. We believe that BCH has the means to provide every global citizen with economic freedom, helping liberate them from the confines of the current manipulated economies people are forced to live with today. In contrast to government-issued fiat, the Bitcoin Cash network is a decentralized, peer-to-peer electronic cash system that moves beyond borders and can help the world enjoy a new monetary renaissance. In honor of the 30th anniversary of the Tiananmen Square protests, Bitcoin.com decided to launch the over-the-counter BCH marketplace on June 4.
Our team announced the launch of Local.Bitcoin.com during the second week of May and since then there’s been a ton of interest from crypto enthusiasts around the world. So far the marketplace has seen 7,680 signups, 3,118 total offers and 2,202 active offers from traders out of 3,118 created since launch. A great number of Local.Bitcoin.com signups stem from the U.S. (24.5%), Nigeria (6.1%), Indonesia (5.7%), India (5.1%), and the Philippines (4.7%).
There’s also a decent amount of accounts coming from the U.K., Canada, Zimbabwe, Venezuela, and Russia. Currently, 37.8% of traders plan on swapping with USD but there’s a large number of trades exchanging with EUR, INR, NGN, IDR, PHP, GBP, THB, and CAD. The most popular choice of payment is bank transfer (33.4%) but the second largest payment is in-person cash trades (16%). This is followed by Paypal (14.4%), cash deposit (7.8%) and Western Union (5.7%) while gift cards (2.7%), Moneygram (2%), Skrill (1.8%), and Venmo (1.2%) follow behind.
Today’s grand opening of Local.Bitcoin.com in honor of the Tiananmen Square protests will help make bitcoin cash accessible to anyone who wants unrestricted access to a tool that fosters economic freedom. Bitcoin’s first angel investor and the CEO of Bitcoin.com, Roger Ver, is thrilled to see all the signups and action taking place on the peer-to-peer market during the pre-launch up until the opening day. Ver ventured during the launch:
Local.Bitcoin.com is a game changer for not only for cryptocurrency trading, but for global trade as well.
Signing up for Local.Bitcoin.com is easy and only takes a few minutes. If you want to get in on all the private, over-the-counter trading action happening on our BCH marketplace then go directly to the trading platform’s signup page. Local.Bitcoin.com will ask you to create a username and password for the exchange and the system will also generate a private key offline. Everything is encrypted using AES256-CBC to a PBKDF2-stretched version of your password, ensuring that our company has no access to your Local.Bitcoin.com wallet as the entire process is completely noncustodial. After you complete the signup process, the system will send you a confirmation email so you can access your account settings and create trades.
Now that the market is open you can create offers and trades while also being able to browse the active trades currently listed. You can customize your account setting and change your username, write a blurb about yourself, edit your email address, and add a phone number as well. The account setting section will allow you to set up two-factor authentication and download your Local.Bitcoin.com wallet’s backup. Additionally, in the settings section, you can generate a referral code in order to invite family members and friends. For every person you refer, you earn 20% of the fees for the lifetime of all the users who sign up through your unique code.
Local.Bitcoin.com is a great noncustodial service that allows individuals to trade with each other freely. With Local.Bitcoin.com’s blind escrow system no one touches your money but you and it is technically impossible for our website to spend BCH held in escrow. The escrow makes it so both parties can complete a trade on their own, unlike competitor OTC services where the escrow is held by the third party for a short period of time. Bitcoin.com can help with dispute resolution but we can only allow the funds to be spent by the buyer or seller using the opcode OP_CHECKDATASIG. This opcode is only available using the Bitcoin Cash network and it enhances the decentralization of the Local.Bitcoin.com service. This is a significant technological achievement as the platform provides a way for users to leverage a noncustodial escrow system for the exchange of any product in any country. For instance, two BCH community members have already written some fascinating methodologies on how people can trade on our local market in a Shapeshift-like manner for other digital currencies or for literally anything.
“In general, [Local.Bitcoin.com] could be used for any trade paid with Bitcoin Cash,” BCH proponent Cláudio Gil said on the Honest.cash social network. “The same way you can choose “Cash (in person)”, meaning you will meet in person and pay cash for BCH, you could agree to trade stamps or even potatoes for BCH.”
Check Out the New Peer-to-Peer BCH Matchmaking Service Today
Today is a big achievement for Bitcoin.com and a milestone that will be remembered for quite some time. Launching a peer-to-peer BCH marketplace makes bitcoin cash far more accessible and we hope it inspires free trade that transcends borders and traverses all walks of life. If you want to learn more about Local.Bitcoin.com, visit our frequently asked questions (FAQ) section. There’s also a series of guides that provide step-by-step instructions on how to buy and sell on Local.Bitcoin.com after browsing existing offers. Another guide gives directions on how to stay safe and secure while trading with peers. So if you want a more personal trading experience and the ability to buy and sell bitcoin cash in a noncustodial manner, head to Local.Bitcoin.com and check out what our new peer-to-peer BCH matchmaking service has to offer.
What do you think about Local.Bitcoin.com? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Pixabay, and Local.Bitcoin.com.
How OTC trading conquers the crypto world and why its volumes are drastically different from those of crypto exchanges. Here is everything you want to know.
How are these issues solved?
As the OTC market evolves, companies are working on building trusted custodial solutions and risk management systems.
The OTC market is expected to continue steadily growing, and the financial insiders are exploring new ways to make these deals more secure so that institutional investors might be more involved in crypto.
For instance, Fidelity, the world’s fifth-largest asset manager, is developing a cold storage to hold the assets from large over-the-counter crypto trading firms. Meanwhile, Coinbase has integrated its custody service with its own OTC desk, which enables customers to use the OTC desk to price and confirm trades prior to moving funds.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.
What are the problems with OTC?
As well as in any other type of trading, you should be worried about scammers and settlement risks. That’s why you have to do preliminary research before trading.
The sources of the large crypto amounts can sometimes be quite murky. As an anonymous trader told Reuters, OTC trading sees spikes of activity when a big hack happens. So, when you trade anonymously, you always have to be careful with the trader on the other side and beware of suspicious transactions.
The forums and topics on Reddit are full of sad stories about scammers taking advantage of naive traders, providing fake videos of the amounts they have, making false agreements or using other phishing techniques. In particular, there are many warnings about fraudsters on LocalBitcoins. However, in most cases, fraud can be prevented by simply canceling any deal that seems shady or by applying to a skillful intermediary.
Moreover, most OTC brokers do not yet provide a trusted custody solution, which would mitigate settlement and operational risk. It is for this reason that many traders use escrow services or bank transactions to be able to return the money if the deal fails.
Okay, I want to start trading. How do I choose an OTC desk?
If you are okay with KYC and AML policies, you could start trading at OTC desks launched by crypto exchanges. For a higher level of anonymity, choose smaller companies or private deals.
To start trading, you first of all have to decide whether you are ready to comply with KYC procedures and provide your sensitive private data to the intermediary. As we explained before, on the desks operated by Coinbase, Binance and other major exchanges, you will likely be obliged to do so.
The process of becoming an OTC deal participant at smaller services is much more simple. For instance, at Changelly, the customer only needs to provide a working email, a convenient messenger for further communication with a broker assistant, and to provide a username via the application form placed on the OTC online desk.
Moreover, if you are working with broker assistants or other counterparties, you have to carefully examine the fees charged for each transaction. For instance, it might be flat or, on the contrary, might vary based on the size of the trade.
Security and the type of storage that the OTC desk uses are also important. It is crucial to find out whether your service is providing insurance to traders or not. It would also be useful to have a personalized assistant available in your time zone, who could answer your questions and help with the deal in case of any troubles.
Finally, do not forget to check reviews on trusted sources. If you are working with the assistant, it is crucial to find out how long he or she has been in business. You can also Google whether he or she specializes solely on OTC trading or also offers other services.
What amount of crypto do I need to start OTC trading?
The institutional OTC desks launched by crypto giants name an impressive starting sum, but smaller companies and intermediaries have lower thresholds.
Normally, the amounts are quite impressive. Let’s start with the major players, mostly aimed at institutional traders. As Cointelegraph briefly explained in its review dedicated to OTC services in crypto, on the desk founded by the U.S.-based cryptocurrency exchange Bittrex, investors are obliged to commit to trades of $250,000 or more. Another U.S. exchange, Poloniex, has exactly the same threshold for traders.
Binance, the Malta-based crypto exchange previously mentioned in terms of daily limits, insists that only transactions that are larger than 20 BTC (around $175,000 at press time) will be carried out over its OTC. Meanwhile, on the U.S. exchange Coinbase, only selected users of Coinbase Prime, a service specifically tailored to institutional investors, can use the OTC trading feature.
However, the atmosphere of OTC trading in smaller companies and in specialized private chat rooms is much more relaxed. For example, Changelly, a noncustodial instant cryptocurrency exchange that has recently launched its own OTC service, sets the limit of 10 BTC ($86,000) to start trading. And in some Telegram chats, you can set a deal directly with a person who needs the same amount of crypto you want to sell.
I’m not a bitcoin whale. Why would I use OTC trading instead of a crypto exchange?
If you are seeking higher liquidity, combined with a decent level of anonymity, OTC trading might be an elegant solution for you.
Let’s imagine you are trying to sell a noticeable amount of altcoins you saved from the early crypto years. Most importantly, you would be seeking high liquidity for your assets. The experts agree that major exchanges usually have lower liquidity than what is ideal. This is why you might rather use OTC trading if you are looking to invest more.
The second key goal for a trader is to minimize the impact on the market as a consequence of a large deal. This point is relevant mostly for those who are looking to buy or sell thousands of bitcoins. If you apply to OTC trading, the transaction is performed directly and does not show up in order books, which is why it will not affect the price.
Moreover, if you are investing in a lot of bitcoin or any other crypto asset, you might want to protect your identity and keep the deal anonymous. In this case, skipping the services of major exchanges and purchasing the assets directly from a counterparty is a nice way to avoid unnecessary attention and keep the deal to yourself.
Finally, even if you are quite far from being a bitcoin whale, on regular exchanges, you have to respect certain daily and monthly trading limits. For instance, major United States exchange Coinbase has a $10,000 daily limit for its Pro Users, which can be increased to $25,000. Meanwhile, Malta-based Binance offers a 2 BTC daily limit to all users and a 100 BTC daily limit to those who pass all the necessary Know Your Customer (KYC) procedures. As skillful traders explain, these limits can be increased significantly upon personal request — at this stage, however, it has nothing to do with making an anonymous deal.
Who are the main customers of crypto OTC desks?
Crypto miners who sell their profits represent a significant segment of OTC market sellers, while hedge funds and institutional investors are among the buyers.
In October 2018, Cumberland OTC desk, the Chicago-based crypto trading unit of DRW Holdings LLC, revealed that most of its deals took place during Asian working hours. The experts then told Bloomberg it might be a sign that Asia-based miners, such as Bitmain’s Antpool and BTC.com, were liquidating their coins via OTC trading.
However, the OTC market is obviously far from being dependant on miners. According to an investigation performed by Reuters, this type of trading also involves wealthy investors, payment processors and, increasingly, hedge funds. As per 2018, the notable players on this market were men in their mid-20s or early 30s. The trades were mostly performed via online messaging services like Telegram or Skype, through brokers or on specialized OTC desks.
Incidentally, some experts believe that institutional investors, who are expected to drive crypto industry to mass adoption, are widely interested in buying crypto outside large exchanges. This statement has partly been corroborated by the recent news about the top 100 crypto companies — such as Huobi, Coinbase and Bithumb — launching their own OTC desks exclusively for institutional clients.
To sum up, everyone who wants to buy or sell large amounts of crypto without excessive regulation (and sometimes on better terms) applies to OTC trading or intermediaries working in the sphere.
What is OTC trading?
Generally speaking, over-the-counter (OTC) trading is a deal that happens directly between two interested parties — that is, without the supervision of exchanges.
OTC deals involve a wide range of assets — from commodities to financial instruments like stocks and derivatives. Unlike traditional exchanges, the OTC market is decentralized and has no physical location, and trading is done via dealer networks. Traders are not necessarily involved in the process directly, as they can seek assistance of middlemen, like brokers, or OTC desks.
OTC desks are mostly trading securities that are unlisted on a formal exchange due to various reasons. Often, smaller companies are unable to comply with the listing requirements of formal exchanges or pay the fees required by the big industry players. That’s where OTC trading comes into play.
This market brings not only the risks that counterparties face during the direct deal, but also freedom and opportunities, which is why OTC trading has become increasingly popular among qualified investors, traders and even commercial giants. For instance, Nestle, Bayer, Danone SA and some other major companies are trading their shares on OTCQX, the top tier of the three marketplaces for trading OTC stocks.
With regard to the cryptocurrency industry, OTC desks have gained popularity among those who are willing to sell large amounts of coins, like miners or early crypto investors. On the other hand, there are plenty of investors — including high-profile ones — willing to buy crypto without resorting to major exchanges.
The OTC market is considered particularly promising by crypto investors. Perhaps this is why major companies such as Binance, Coinbase and Circle kept opening their own OTC desks right in the midst of the crypto winter, when the rates of bitcoin and major altcoins were far from optimistic.
According to some estimates, crypto OTC trading currently has larger daily volumes than the major exchanges. For instance, investigators from Digital Assets Research and TABB Group found out that the OTC market facilitated $250 million to $30 billion in trades per day in April 2018, while the exchanges handled about $15 billion in daily trades during the same period.
The system allegedly has no centralized order book or matching engine, and only financial instruments are restricted from the platform. Furthermore, the press release claims:
“Customers can trade any ERC20 token, and even specify custom Ethereum addresses for tokens which are not currently listed on any exchanges.”
Per the release, the new system uses blockchain to enforce an OTC transaction as an atomic swap. This removes the need for an escrow, according to the release, and reportedly “opens up OTC to anyone through significantly lower fees at 0.02%,” as the release claims those fees are usually 2% to 5% on traditional OTC desks.
The press release notes that Ethfinex Trustless OTC has no Know Your Customer (KYC) or signup process, but that people residing in the United States and other restricted countries are not permitted access to the service.
Also this week, FinnishP2P bitcoin (BTC) trading platform LocalBitcoins apparently removed its cash trading option from its service, according to online reports. The company had reported in February that it would be working towards compliance with European Union Anti-Money Laundering/KYC standards.