In line with the newly proposed law by the European Union on anti-money laundering, LocalBitcoins is putting its house to abide by the new regulatory guidelines. The popular peer-to-peer crypto exchange is making plans to establish new requirements that will guide identity verification for its trading platform users.
The firm which is based in Helsinki, Finland, has announced that it will be working with local regulatory authorities to ensure that the new law is adhered to.
The management of LocalBitcoins disclosed on their official website that the crypto exchange service would support the recently enforced 5th anti-money laundering directive (AMLD) by the European Commission.
The new law, also known as 5AMLD, covers all activities related to virtual currencies. According to reports, EU member states are required to update their regulatory framework before January 2020 to satisfy the requirements of the new 5AMLD.
The New Regulatory Guidelines Comes “Significant Benefits”
Finland, the home base of LocalBitcoins, has come up with new regulatory guidelines to adequately monitor the activities of local crypto-related businesses to ensure that the EU’s Anti-Money Laundering Act is followed to the letter. According to an announcement, LocalBitcoins has started working with Finland’s financial regulators, advising the body on issues regarding guidelines formulation and compliance standards for digital assets.
LocalBitcoins has made it known through its mission statement that it aims to “bring Bitcoin everywhere.” The company wrote the following on its website:
“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.”
Furthermore, the management of LocalBitcoins is confident that the newly introduced regulatory guidelines by the European Union will provide “significant benefits” to crypto investors and traders. In response to the fraudulent activities and scams that are perpetrated using cryptocurrencies as well as the conventional financial system, digital asset firms have adopted various measures to checkmate such occurrences and to also ensure that their platforms obey the appropriate regulations.
Exact Legal Requirements
Currently, LocalBitcoins is preparing the exact (new) legal requirements for its users. However, the firm’s management has revealed that the updated regulatory framework will bring about significant changes to the operational method of crypto trading platforms.
In the blog post, LocalBitcoins noted:
“We are working to make the transition easy to all users who make legitimate use of our services and already comply with LocalBitcoins’ (terms of service) ToS. We will keep you informed through blog and social media updates and will provide more detailed information on the coming changes during March 2019.”