Global P2P Marketplace Leader LocalBitcoins Will Be Supervised By Finland’s Financial Authority
LocalBitcoins Will Be Supervised By Finland’s Financial Supervisory Authority
An international peer to peer (P2P) cryptocurrency exchange called LocalBitcoins will start to be regulated soon. The company has recently announced that the Financial Supervisory Authority of Finland would start to supervise its activities.
This will happen because the Finnish Parliament has passed new legislation that provided legal status for crypto companies in the country on March 13, the Act on Virtual Currency Service Providers. This has let the Helsinki-based company finally be fully regulated in the country.
Also, another law was voted at the same time. This other law was the Act on Detecting and Preventing Money Laundering and Terrorist Financing, which was created to make all crypto services compliant under international anti-money laundering laws.
LocalBitcoins was considerably happy with the new measures as the company believes that these acts will contribute to enhancing the public recognition of the crypto market and now this will be considered more legal and legitimate for the financial sector in the country and the world.
LocalBitcoins Will Create New Tools To Enhance Compliance
As well as obeying the new legislation, the company is set to make an effort to be compliant with the new laws, as LocalBitcoins has reported that its research and development department is creating tools that will increase the compliance.
The company has also recently launched a new registration process for new users, which will have new ways to verify their ID. Also, now companies will have a specific verification process, which will be lengthier and differentiated from the one that individuals have to make in order to trade using the platform.
This move was very important for LocalBitcoins and not only because the company is set to be benefited from the awareness of being recognized officially.
Lately, the company was experiencing issues with several local banks which were refusing to work with it because the company dealt with cryptocurrencies, which were unregulated in the country. At the time, at least four banks had refused to work with the exchange.
Now, however, the situation is about to change drastically as the company will have a fully regulated service and the banks will not have any excuses not to offer its services to the company now.