BTC Marketplace, LocalBitcoins Partners With Elliptic To Integrate Blockchain Monitoring
Global Bitcoin (BTC) peer-to-peer exchange, LocalBitcoins announces its partnership with Elliptic, a crypto surveillance company, to further compliance on the site. An announcement from the Finland-based company confirms the addition of two Elliptic Solutions to prevent illicit crypto from transacting on the platform, namely, the Navigator risk analysis tool and Lens wallet screener.
“By choosing @elliptic, LocalBitcoins have demonstrated their commitment to eliminating illicit use of their platform,” said Tom Robinson, Elliptic’s co-founder and Chief Scientist.
— LocalBitcoins.com (@LocalBitcoins) July 28, 2020
Following its registration as a virtual currency payment provider in Finland, LocalBitcoins set out changes in its regulations. The latest integration of Elliptic’s blockchain monitoring tools aims to comply with the AMLD5 recommendation set out to European countries. LocalBitcoins stopped cash trades on the platform, citing issues with KYC/AML compliance.
The P2P exchange also took steps to make KYC mandatory on the exchange as well as discontinue Iranian users from the platform due to global economic sanctions placed on the country.
According to the chief scientist of Elliptic, Tom Robinson, exchanges that implement the blockchain monitoring solutions reduce their overall work, saving time to focus on stricter compliance issues. Speaking on the latest addition of Elliptic, Tom said,
“The reduction in flows from dark markets to peer-to-peer exchanges is a clear consequence of these businesses introducing strong KYC and AML controls. Criminals are now thinking twice before trying to cash-out through the major peer-to-peer exchanges.”
Following the toughened regulation and compliance on LocalBitcoins, users seem to be migrating to rival P2P exchanges, challenging its dominance. In December 2019, Paxful became the first P2P exchange for dethroning LocalBitcoins in weekly volumes traded, and the latter has since struggled to recoup its dominance.