Finnish p2p crypto trading platform LocalBitcoins has warned that Tor Browser users are prone to Bitcoin theft.
September 11, 2019, | AtoZ Markets - Finland-based peer-to-peer cryptocurrency exchange Localbitcoins has warned users about alleged security risks they can incur if they use the Tor browser.
Localbitcoins warns of the risks of Tor Browser
A transactional compliance expert Richard Bensberg, brought the issue to the front lines on September 9, providing the screenshot below of a LocalBitcoins banner warning Tor users about the risk of losing their Bitcoins.
The motivation behind this warning could be related to the recent discovery of some privacy issues found in Firefox, and consequently on the anonymous Tor Browser on which it is based, but which were quickly updated last week.
However, this trigged the response of LocalBitcoins to Bensberg, reiterating that while using it is not against its terms of service, it is not recommended due to security reasons. LocalBitcoins did not specify why the browser makes users more vulnerable to theft.
Bensberg criticized the move by the exchange, arguing that Localbitcoins has “really lost the plot” by putting a banner warning against the browsing tool praised for providing privacy and anonymity.
Tor Browser is the flagship product of the Tor Project, the firm behind the anonymous Tor network. In July 2019, Tor Project’s crowdfunding initiative for BitcoinForTor raised $10,000 softcap just 25 hours after launch. Ultimately, $18,892 was raised from the 2-week campaign in order to support its internet goals of privacy and freedom.
LocalBitcoins complies with KYC guidelines
Meanwhile, LocalBitcoins has seen a significant decline in trading volumes after the exchange abruptly discontinued the option for users to perform local cash trades in early June. In the same month, the crypto company announced that the personal info of clients must be submitted in order to be allowed to trade on its platform, something many feels goes against Bitcoin’s ethos.
However, the managers have clarified that they have to comply with Know Your Customer (KYC) requirements as per the laws of the European Union (EU). Customers now have until October 1 to submit the necessary information or face losing their accounts.
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