Crypto Exchange Platform LocalBitcoins To Be Put Under Supervision

LocalBitcoins, an international peer-to-peer crypto exchange, announced today that the platform will be put under supervision by the Finnish Financial Authority. Let’s find out why in the latest cryptocurrency news below.

LocalBitcoins is based in Helsinki, Finland and the platform has stated previously that the parliament of Finland gave approval for the new legislation meant for legalizing crypto assets. The regulator gave a green light on the new Act on Virtual Currency Service Providers which is expected to come into force from November this year. The operator pointed out:

‘’The Virtual Currency Service Providers Act will come into full effect in the beginning of November 2019 creating a legal status for crypto assets, which should improve significantly Bitcoin’s standing as a viable and legit financial network.’’

The parliament also proposed multiple amendments to the Act on Detecting and Preventing Money Laundering and Terrorist Financing in order to put all of the crypto-related services under the Anti-Money Laundering act and to bring the regulation of the country in alignment with the European Union’s 5^th Anti-Money Laundering directive.

All of the crypto exchanges that fall under the new directive, have an obligation to report all kinds of suspicious activity and create KYC reports. The investigators have to obtain the identity of the users such as names and home address.

LocalBitcoins for example, is about to be investigated because of the many users who used the platform to conduct money laundering. In 2018, Theresa Lynn or the ‘’Bitcoin Maven’’ was sent to prison after laundering about $20,000 worth of Bitcoin. Another user, Mr. Morgan Rockcoons was accused of money laundering on the same platform as well.

The new AML measures could improve the general opinion of the exchange and will also protect other users. It is also important that with the new regulation it is expected to increase the crypto adoption. LocalBitcoins is further making sure that the security level on the platform is updated and increased in order to be complaint with the regulatory framework.

The exchange also initiated a registration process so the users can have the ability to verify their identity while signing up to the platform. Each user will have a different type of account depending on the verification process and the type of trading the users will prefer.