So on this journey I have been on a pretty steep learning curve…
I have these probably irrelevant questions and this one being…
" what if the trader I am dealing with is the tax department or some other company collecting my details??
I.e. name , bank details…
It seems more reasonable to only let the arbitor have the details??
I suppose then how would we know we could trust the arbitor??
Would that just defeat the purpose of going to these lengths ??
Yes, you can be framed by the tax authorities if you use Bitsquare for illegal purposes. In most jurisdictions it is however legal to trade in Bitcoin. If it becomes illegal trading will still continue. This I know since in places where private currency exchange is or was illegal (Argentina, Venezuela, formerly in Soviet Union, formerly in Iraq and many other places) it still continues/continued openly despite the ease of framing traders.
Framing can be done but it needs a big effort and cannot be worth it for the small sums involved in every trade.
The taker fee makes it expensive to collect a lot of banking details.
To have the arbiter involved in every trade would entail a huge cost and one would have to trust him/her.
I would have thought it would be good for authorities would like to just at least get the data and Have some kind of link of an identity or bank address to trading activity… Kinda like just keeping an eye on things…
Kinda like google… Nobody think twice about confessing there every thought to google, a private company…
I just think it would be better to not need to reveal our credetials to the third party…
I mean why not have a robot arbiter?? and have its action verified by other users??
Only in dispute cases the data are revealed to the arbitrator. In future there might be an option to even keep the private data encrypted and only if the arbitrator needs the data he has to request it from the trader.
Robots will not help you, believe me… 
That would be a smart contract that would require the software to understand everything an arbitrator does. With so many ways to pay and prove you payed, and unexpected things, it gets technically difficult to program such a thing, and would make adoption of new payment methods and currencies a lot more difficult. Eventually AI will probably take all human jobs, but we are just not there yet, so an arbitrator will have to work for now.
And then you need someone who helps you to deals with the bugs of the robots/AI ;-).
Hopefully 
Maybe AI’s start getting rights and no one will be able to change them, that is just who they are. This will be very interesting to watch 
Whatever happens I think programmers will be proud of their robot babies
Maybe they dont will have rights but so much power that they dont care…