The problem Local Coins solves

Our participation in the Based SEA Hackathon stems from our passion for empowering users in Southeast Asia with decentralized, peer-to-peer financial tools through LocalCoins. Southeast Asia has rapidly become a hub for cryptocurrency adoption, but many users still face barriers such as limited access to traditional banking services, high fees, and regulatory challenges. LocalCoins provides a non-custodial, no-KYC solution to help users easily and safely exchange crypto for fiat, addressing these pain points.

Our motivation is rooted in the belief that decentralized finance can unlock financial freedom for millions across the region. We are committed to contributing to the growth of blockchain and crypto ecosystems in Southeast Asia by offering a solution that aligns with the region’s needs for more accessible and transparent financial platforms. By participating in Based SEA, we aim to collaborate with like-minded innovators, learn from the unique perspectives of Southeast Asia’s vibrant tech community, and drive real impact in local markets.

Southeast Asia’s dynamic, fast-growing crypto market is a perfect fit for LocalCoins, and we’re excited to be a part of its future.

Challenges we ran into

During the development of LocalCoins, we faced several technical and non-technical hurdles, but we managed to overcome them with innovative solutions.

1. Decentralization and Security
   Ensuring a fully decentralized, non-custodial system was a major challenge. Balancing security with decentralization required the creation of smart contracts that serve as automated escrows. These contracts ensure both parties fulfill their obligations before releasing funds, reducing fraud risks without relying on intermediaries.

2. User Experience in a No-KYC Platform
   Operating without KYC brought challenges in user trust and onboarding. Without identity verification, we needed a way to ensure accountability. We implemented a reputation and reporting system, allowing users to rate and report other traders. This built trust while maintaining privacy.

3. Regulatory Compliance
   The decentralized, no-KYC nature of LocalCoins raised regulatory concerns, especially regarding fiat transactions. We solved this by ensuring that the platform only facilitates cryptocurrency exchanges, leaving users responsible for managing fiat transfers. This decentralized model reduces regulatory exposure while maintaining user freedom.

4. Scalability and Speed
   To handle large transaction volumes, we needed a solution for scalability. By leveraging Base’s scalable network, we ensured fast and low-cost transactions, making LocalCoins efficient and prepared for future growth.