LocalBitcoins to Comply with Finland’s New AML Laws

Wilfred Michael 

Wilfred Michael

News reporter

26 March 2019,
09:58
LocalBitcoins to Comply with Finland’s New AML Laws

Finland-based peer-to-peer cryptocurrency exchange, LocalBitcoins, said in a Monday announcement that it would roll out new changes on its platform in a bid to comply with newly approved laws for cryptocurrency service providers in the country.

As the update notes, the Finish Parliament on March 13, voted for and approved the creation of a new Act for Virtual Currency Service Providers and the adjustment of Finland’s Act on Detecting and Preventing Money Laundering and Terrorist Financing.

Upon adoption of these legislations at the beginning of November 2019, custodian wallet providers and exchanges like LocalBitcoins will have a mandate to tighten their security measures, thus, making it easier to track suspicious users.

Now, instead of waiting longer to implement the necessary changes required to reach regulatory compliance, LocalBitcoins which was recently breached, revealed it has already put some new features in place.

For instance, the team has rolled out a new registration process that would allow users to verify their basic information during signup. The announcement notes that this feature will not only help LocalBitcoins to comply with the new rules but also enable new users to find peers to trade with once they get on the exchange.

The team also reported that they are working on a new identity verification process that would involve “four individual account levels per trade and BTC transaction volume, ” adding that it will serve as a way to increase trustworthiness to a users profile. Lastly, corporate account operators on the exchange would have to deal with a new verification process that is still under development.

The continued cases of hack on cryptocurrency exchanges have recently forced regulators globally to start defining new rules for service providers in the new industry. As Stmarket.co reported last week, Canadian regulators have released proposed regulations for cryptocurrency exchanges following the ugly experience faced by users of now defunct, QuadrigaCX.

French regulators also defined regulatory obligations for crypto exchanges as part of its newly proposed rules for the crypto space set for approval next month.