Categories: CryptoNews

Buying Bitcoin With Cash Through LibertyX Is Not Anonymous

The concept of buying Bitcoin at retail stores is quite an appealing one, as it removes most of the friction associated with obtaining digital currency in the first place. While these services are limited to particular regions for the time being, buying Bitcoin for cash does not mean people will remain completely anonymous. LibertyX lets users buy BTC from over 19,000 stores in the US, but users will need to go through an identity verification process, removing any form of anonymity.

Also read: How To Get Bitcoin

LibertyX Provides Convenience And Removes Anonymity

Purchasing Bitcoin with cash is one of the faster ways to obtain digital currency these days, although very few countries actively offer such a service. The only exception to that rule is LocalBitcoins, a peer-to-peer trading platform connecting buyers and sellers directly, allowing them to set up their own payment methods.

Unlike LocalBitcoins, LibertyX is not trying to target the entire world, but just the United States for now. Their business model is rather elegant: walk into any of the 19,000+ supported stores and purchase Bitcoin over the counter. The only requirement is for users to sign up to the LibertyX service ,a  process that should not take all that long.

However it is important to note that, during the LibertyX purchasing process, users will need to verify their identity. An ID scan will have to be made at some point, to comply with the KYC and AML regulatory framework in the United States. Additionally, users will need to link their mobile phone number to the account as well, which will be used to deliver PIN codes to pick up Bitcoin purchases.

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Regardless of how one wants to use the purchased digital currency, this verification process will always remain in place. For those people looking to buy bitcoin and spend it on the darkweb, it is important to note you have zero anonymity when purchasing Bitcoin from LibertyX, as they have a complete record with personal information, the date of purchase, and the transaction detailing where the funds came from and which wallet it was sent to.

Most people might argue there is no need for real anonymity in the Bitcoin world at this stage, but some people prefer to remain as anonymous as possible. It is possible to use coin mixing services to receive “clean” bitcoins after your LibertyX purchase, but those platforms should only be used at one’s own risk.

LibertyX provides a very convenient service for people to get their hands on Bitcoin without going to an exchange or ATM. But for those who want to preserve some shred of anonymity = for whatever reason – it is not the perfect solution. Not that there is anything wrong with that, mind you, as anonymity is not natural to the Bitcoin ecosystem.

Source: Reddit

Images credit 1,2

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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JP Buntinx

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