Introduction to the Controversy
LocalBitcoins, a well-known peer-to-peer cryptocurrency exchange, recently stirred the pot by warning users about the risks associated with accessing their platform through the Tor Browser. On September 9, the exchange’s cautionary message started circulating on social media, raising eyebrows and questions about the safety of using this privacy-centric tool.
What Did LocalBitcoins Say?
In a tweet, transactional compliance expert Richard Bensberg showcased a banner from LocalBitcoins that said,
“Warning to all Tor users: A Tor browser exposes you to the risk of having your bitcoins stolen.”
This bold statement certainly didn’t go unnoticed.
The Exchange’s Position
LocalBitcoins followed up with a response acknowledging that while using Tor isn’t prohibited under their terms of service, they don’t exactly endorse it due to unspecified security concerns. Perhaps it’s an attempt to cover their bases, or maybe they just don’t trust the anonymity that Tor provides.
Criticism from the Community
Bensberg didn’t hold back in calling out the exchange, stating that they’ve “really lost the plot” with this warning. The Tor Browser is generally celebrated for its commitment to privacy. So, is LocalBitcoins simply scared of what it doesn’t understand, or is there a genuine concern lurking beneath the surface?
A Closer Look at Tor
For the uninitiated, the Tor Browser is the flagship product of the Tor Project, aimed at promoting online privacy and anonymity. The firm raised significant funds to continue its mission, and even whistleblower Edward Snowden has sung its praises. So why is a platform, that thrives on trading cryptocurrencies, dissing a tool that champions privacy?
The Bigger Picture: LocalBitcoins’ Recent Changes
Amidst this hullabaloo, LocalBitcoins has faced its own challenges. After shutting down local cash trades in June, the exchange has reported a marked decline in trading volumes. Further tightening their policies, LocalBitcoins introduced a new verification system and segmented account types. The question remains: Are users really safer under these stricter guidelines, or is it just a ploy to control the chaos?
