LocalBitcoin is a Bitcoin exchange platform based in Finland is also one of the oldest platforms to be supporting P2P services. Recent news suggests that LocalBitcoin is going to be making some amendments to improve its anti-money laundering (AML) and know-your-customer (KYC) policies. These changes are occurring because the platform has to follow the new set of rules and regulation made by the FSA and European Union.
The platform will make these changes required by the Virtual Currency Service Providers Act. This new act has recently been approved by the Finnish government. The act was originally passed in the month of May in 2018. The acts main purpose is o prevent illegal activities like money laundering and providing of funds for terrorism.
Crypto space is valued because of its decentralized networking. Because of this very reason, it is the most preferred route to commit such illegal activities through. This is why the act requires crypto-based businesses to give a regular report on any suspicious activity that is noticed regularly.
LocalBitcoins has announced that the new changes will be made on the 25th of March. The new amendments are made in a manner that they will not affect the customer’s experience with LocalBitcoins. This is done by coming up with a short but efficient verification system. However, corporate accounts will undergo a separate type of verification.
Even though the changes are being made to help the customer and user the response to these changes is not very positive. Many users are openly voicing their disapproval to the new amendments. Hence this means that LocalBitcoin move to make the government happy might result in its own downfall.