Peer-to-peer crypto exchange Localbitcoins is preparing to implement updated requirements for the identity verification of its users. The company recently revealed it’s cooperating with regulatory agencies in Finland on the implementation of the latest EU anti-money laundering rules.
P2P Exchange Localbitcoins Advising Finnish Regulators
In a statement published on its website this week, the popular P2P coin trading platform Localbitcoins explained why the upcoming changes are necessary. The new 5th Anti-Money Laundering Directive (5AMLD), which was enforced by the European Commission in July 2018, covers virtual currencies. 5AMLD, or Directive 2018/843 of the European Union, also includes cryptocurrency exchange services and custodian wallet providers in its scope, Localbitcoins noted.
EU member states now have until January 2020 to transpose the new 5AMLD requirements into their national legal frameworks. Finland, where Localbitcoins is based, has already drafted new legislation concerning digital currency services that amends the country’s Anti-Money Laundering Act in accordance with the European directive.
According to the announcement, Localbitcoins has been a pioneer in advising Finnish regulatory agencies in this process and adapting to the new standards of compliance relevant to the cryptocurrency industry. The Helsinki-based company believes its mission is to “bring Bitcoin everywhere.” It says that “by 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.”
Changes to Affect Account Registration and Verification
The Localbitcoins team has also expressed confidence that the new measures will bring “significant benefits” to users by promoting a safer trading environment and preventing fraud.