Localbitcoins introduces new rules for checking user.

[Paha87]

Localbitcoins peer-to-peer crypto platform is preparing to implement updated requirements to verify the identity of its users. The company recently reported that it is working with regulatory authorities in Finland to implement the latest EU anti-money laundering regulations.

Localbitcoin consults with Finnish regulators

In a statement posted on this website this week, the popular p2p platform for trading Localbitcoins cryptocurrency explained why the upcoming changes are inevitable.

The new 5th anti-money laundering Directive (5AMLD), enacted by the European Commission in July 2018, applies to virtual currencies. Localbitcoins notes that 5AMLD, or the European Union Directive 2018/843, also includes cryptocurrency exchange services and crypto-wallet providers.

EU member States now have until January 2020 to move the new 5amld requirements into their national legal framework. Finland, where Localbitcoins is based, has already developed a new law concerning services related to digital currency, which amends the country's anti-money laundering Law in accordance with the new European Directive.

Localbitcoins is a pioneer in advising Finnish regulators in this process and adapting to new compliance standards pertaining to the cryptocurrency industry. The company, based in Helsinki, believes that its mission is to "bring bitcoin into all spheres of life", clarifying:

As a benchmark of compliance, we also seek to promote trust, legitimacy and maturity in the bitoin ecosystem, paving the way for it to become more viable and widely distributed as a currency.

Changes to account registration and verification processes

The Localbitcoins team also expressed confidence that the new measures will bring "significant benefits" to users, helping to create a more secure trading environment and preventing fraud.

Although the exact legal requirements are still under development, the exchange has notified customers that they will make "major changes" to the cryptocurrency platforms. The company further clarifies:

The most important changes concerning users of Localbitcoins, will be improvement of the registration process of new accounts and processes identity checks, the introduction of output levels for wallets and verification of the volume of trade.

The Finnish company also said that it is working to smooth the transition for those customers who legally use its services and already comply with their conditions.

For many years Localbitcoins has been a reference platform among peer-to-peer cryptocurrency exchanges. The platform connects buyers and sellers of digital coins around the world on a geographical basis, allowing transactions and purchases to be made through its own escrow system.

However, despite the successes of Localbitcoins over the years, a number of other peer-to-peer and decentralized crypto-exchangers have emerged. These include platforms such as Paxful, Bisq, Bitsquare, Coinffeine, and Hodl Hodl. New companies continue to create such exchanges.

Link (Russian) - https://altstake.io/news/localbitcoins-vvodit-novye-pravila-proverki-polyzovateley