High time for me to start using P2P decentralized platforms for crypto trading
Of late, I have been thinking and trying my hands figuring out how to use peer to peer platforms for crypto trading (mostly Bitcoin). It’s not that I am much of a trader, however the 30% flat tax that the Indian Government plans to impose on any amount of profits one makes in crypto sucks for me, because I do use the HIVE I earn here for my daily expenses.
For me crypto is not just for investment, it’s how I earn some funds for myself as well so having these tax regulations for me is completely unfair and arbitrary.
This is why I have been thinking hard about how to bypass the need to go to Indian Centralised Exchanges(CEX) and have my cryptos converted to fiat for spending purposes elsewhere.
I will come back to this point again because I want to emphasize how important it is that we all be equipped to trade crypto peer to peer(p2p), why it’s completely justified on our part to bypass CEX and trade crypto in other available decentralized ways if possible.
The Freedom Convoy news strengthened my resolve for cultivating the habit of trading crypto using decentralized P2P platforms
So, I was having the above mentioned thoughts when I [encountered this news ](https://cryptobriefing.com/kraken-ceo-warns-users-to-get-your-coins-out-of-centralized-exchanges/)that said that the Canadian Government has implemented an Emergency law that authorised them to seize funds from bank accounts of Canadian Citizens without any judicial proceedings (court order) and without following due process.
All this was the Canadian Government’s response reacting to the Freedom Convoy protests that happened there with protestors protesting against Government’s current Covid-19 mandate and blocking several key transit routes.
Canadian Government imposing measures restricting financial transactions of Canadian Citizens supporting the Freedom Convoy protests
What I understand is that bank accounts of Canadian Citizens, entities, Corporates who donated to support the Freedom Convoy protest were authorized to be frozen. Infact, funds from some bank accounts probably belonging to Freedom Convoy protestors were seized as well, and financial transactions of those associated bank accounts were cancelled as well!!
Names, account details and even crypto wallet addresses of individuals and Corporates supporting the funding of the protests were noted and shared with financial institutions.
Check this statement from the Canadian. Deputy Prime Minister Chrystia Freeland revealing that Government had seized funds from bank accounts of Freedom Convey supporters, plus their intentions of freezing accounts of anyone donating to the protest.
What’s more all crowdfunding platforms and payment processors were made to register with FINTRAC, so that payment transactions that happen there can be monitored to ensure that accounts that donate funds to the Freedom Convoy protest were frozen, thus effectively blocking all avenues of funding for the Freedom Convoy protestors to continue their protests.
Transferring crypto funds to Centralised Exchanges were also blocked
There were at least 24 crypto wallet addresses blacklisted because they were somehow related to supporting the Freedom Convoy protests. Any funds sent from those wallets to
FINTRAC-regulated exchanges would be frozen as well. Ouch!!
CEO of a CEX recommends supporters of Freedom Convoy Protests to do crypto transactions using only decentralised non-custodial P2P platforms
Image Source
Kraken's CEO warns crypto cummunity supporters of Freedom Convoy Protests to take their funds of Cexs and trade in P2P platforms
Kraken’s CEO, Jesse Powel, therefore expressed himself that centralised exchanges(CEX) have to comply with government orders and so cryptos sent by those blacklisted crypto wallet addresses to crypto exchanges including Kraken would be frozen or might even be seized by Government authorities.
Therefore, he recommended such crypto account holders to withdraw all their crypto coins from Centralised Exchanges and use only decentralised P2P platforms for transactions.
P2P Platforms don’t custody customer’s crypto for Government to seize or freeze
The government can only freeze and seize crypto from regulated CEX since they are third parties that hold and custody customers' crypto in their platform but in P2P platforms like hodlhodlhodlhodl , localbitcoins, local Monero such things are less likely to happen because these platforms don’t hold and control customer funds.
P2P platforms have escrow mechanism to facilitate secure Peer to peer crypto trading
These peer to peer platforms are non-custodial platforms facilitating crypto trading, although crypto from the seller goes into a multisig escrow to be locked, until he/she receives payment from the buyer.
It will be released to the buyer only after the seller confirms that payment for his crypto locked in the escrow is received.
The seller has a key to the escrow so that crypto cannot be taken from there until the seller signs off such a transaction giving his approval.
Need to shield oneself from Government’s arbitrary censorship power
Hmmm…
And now, coming back to the topic of me wanting to surpass Indian CEXs and get my cryptos tuned to fiat using P2P platforms.
If the Canadian Government can seize crypto assets, freeze accounts to curb democratic dissents, then there is no stopping the Indian Government from doing the same.
I don’t want to suffer Government harassment and this current Indian Government takes offence on anyone these days who are critical of their policies and who speak out about them in twitter or FB.
Use of VPN to avoid being tracked by authorities
Anyway, there are more measures a crypto person wanting to avoid Government scrutiny so one can shield oneself from such arbitrary control of Government.
One is to subscribe to a good VPN service, so that one’s IP address remains untracked. I will talk about this later but I have no experience in this.
Compliance to a arbitrary Government is harsh, it's time to rebel!!
Allright, I want to end by clarifying that I am not against people paying taxes and I am not anti- Government.
However, when Government is imposing such unreasonable crypto taxes, are already harassing ordinary people critical of its policies, has a hostile stance towards crypto in general (because they are probably scared that crypto will undermine their power and control over the financial system), I want to avoid being in platforms where they have power to control and restrict all aspects of our financial dealings as much as possible.
Anyway, this is a morally easy stance for me to take because my current Indian Government is untrustworthy, and one that currently does not respect democratic human rights, freedom of expression and such basic things.
I know they won’t hesitant to dominate using their might and control us in the crypto world curbing our right to enjoy cryptoverse powered by various Blockchains.
Financial privacy is a must these days and we need to cultivate the habit of using censorship resistant platforms for protecting our freedom of engaging in crypto without government interference.
Thank you for reading. Happy Weekend!!
