The popularity of non-custodial services will grow amid tightening regulation of the crypto industry. This view was expressed to ForkLog by a representative of the P2P platform MySecure
After the collapse of the centralized crypto exchange FTX, hardware-wallet makers Ledger and Trezor recorded a substantial rise in sales, and Paxful’s CEO urged self-custody of Bitcoin.
Meanwhile, the collapse of FTX and other projects such as Celsius Network and Terra led to tougher regulation of the industry. Thus, the head of the SEC called cryptocurrency regulation a priority of its work in 2023, and the European Parliament voted in favour of the MiCA regulation package for comprehensive regulation of the crypto industry.
According to MySecure, the response to these actions has been decentralization and the development of Web3. Further tightening of oversight over centralized services will only accelerate this trend:
“In 2022, we observed mass user blocks on trading platforms and freezing of their assets — a complete opposite of the principles of freedom and decentralization that underpin the operation of the Internet and Bitcoin.
The P2P model is native to Bitcoin. That is why we launched a non-custodial service. Only such products allow the industry to develop, and enable users to trade freely and manage their assets.”
Not all P2P platforms withstood regulatory pressure and competition from centralized services. Thus, in February the LocalBitcoins announced its closure after 10 years of operation.
“Several well-known platforms have closed, but that is not a reason to think that P2P trading has lost its relevance. On the contrary, such platforms are needed as an alternative to centralized exchanges that strive to monopolise the market,” says MySecure.
The project team believes it is now critically important to choose business models in line with the spirit and values of Bitcoin. Otherwise the industry will become a banking system in a new shell:
“Crypto exchanges may freeze your funds at any moment. This approach had its day as far back as 2008, when Bitcoin was created. P2P gives people choice and freedom of action: you can trade with anyone, anytime, and not worry about the security of your assets.”
MySecure — a non-custodial P2P platform for trading Bitcoin without KYC. All trades on the platform are executed using multisig contracts.
Earlier ForkLog published a piece on how MiCA will change the tracking of cryptocurrency transfers in the EU.