Localbitcoins is a peer-to-peer transaction site, similar to craiglist, but for bitcoin. Some arrests have already been made where sellers were conducting deals that they were not ‘licensed’ to do so:
The idea may be harsh, but the reality is not that far off.
There are crypto cards, that act like prepaid credit cards, that will allow you to use crypto to make purchases anywhere such cards (e.g. visa) are accepted. Similarly, they also allow cash advances via ATM’s and the like. These cards are subject to KYC, just as with any, legitimate banking organization (assuming that they are legitimate). You may find a card or service that operates within a jurisdiction that allows them to skirt various oversight and regulatory groups, but you run a real risk of having your funds stolen.
No matter how you look at it (buying/selling of crypto, or spending of your own money), you are ultimately looking at how to convert fiat-crypto and crypto-fiat, which is the buying/selling of crypto. Even the prepaid crypto cards are set up this way, in that, the cryptocurrency is automatically converted to fiat (sold) prior to the purchase or withdrawal, so that you are actually paying with fiat. Until individuals and businesses start accepting cryptocurrency as payment on a large scale, the conversion of fiat-to-crypto and back will be necessary.
In all cases that I know of, with the exception of peer-to-peer transactions, any service that offers the conversion of fiat-to-crypto and back is and/or will be regulated and usually must hold some form of license to operate, fall under various legal jurisdictions and be forced to comply with local laws et al.