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RE: Is trading on LocalBitcoins Illegal? What is Legal trading?
Part of the reason is that these local traders are stepping on the toes of an established and licensed industry. Those who have jumped through the hoops and paid the toll are not going to look kindly upon every man and his dog starting to take a cut of their regulated trade. Vested interests are always going to be an antagonist towards change. A negotiation and dialogue will need to take place to facilitate that process in the best scenario. Otherwise I guess it is just a knock down and beat em up fight to see who is still standing when the dust settles.