New LocalBitcoins User Verification Rules to Come as Part of 5th Anti-Money Laundering Directive (5AMLD)
LocalBitcoins is a crypto exchange that allows investors to take part in peer-to-peer trading. To make sure the brand is able to operate within Finland, they have recently made changes to the identity verification rules that impact the users. The country has recently implemented new laws regarding anti-money laundering protocols.
The platform published a statement this week, discussing the crucial need for the changes. The European Commission added the 5th Anti-Money Laundering Directive (5AMLD) in July 2018, and it discusses virtual currencies, along with crypto exchange services and custodian wallet providers.
Based on the recent announcement, LocalBitcoins has been a necessary component in the advisement of regulatory agencies as they’ve learned more, and the company hopes to eventually “bring Bitcoin everywhere.” Elaborating, the company said,
“[B]y being a reference in compliance, we also aim to promote trust, legitimacy and maturity in the Bitcoin ecosystem, while paving the way for it to become a more viable and widespread currency and combating criminal use of Bitcoin and its network.”
With the new measures imposed, “significant benefits” will come to users with fewer risks in their trading environment, while stopping more fraud from occurring within the country’s borders.
Though the finalization of the legal requirements is still being debated, the exchange was clear about their “major changes” that they plan to impose.
The company elaborated, “The most important changes concerning Localbitcoins’ users will be related to improving the registration of new accounts and the identity verification processes, introducing wallet withdrawal and trade volume-based verification tiers.”
LocalBitcoins will be working on making the transition a smooth one for anyone that is already complying with the protocols.
Though the company opened in 2012, the platform ended up launching a feature for customers to voluntarily choose to upload their identification information. Later on, this feature became a requirement for anyone who was trading a high amount of Bitcoin. The policy was updated again last year to include certain situations that would have enhanced identification requirements.
Other exchanges for peer-to-peer trading include Paxful, Bisq, Bitsquare, Coinffeine, and Hodl Hodl. A startup in Norway announced its own P2P trading marketplace in November, which has been called Bitruption.