- The company has to comply with the law requirements.
- Users will have to use fiat payments processed by banks or payment systems.
The representatives of the popular P2P crypto exchange platform LocalBitcoins commented on the latest decision to scrap an option to buy and sell digital assets for cash in a face-to-face meeting – they have to comply with the Anti-money laundering legislation requirements. The notes on cash transactions removal were posted on Twitter.
The company admitted that cash transactions help to promote equality as there many people who do not have access to other options except for cash. However, LocalBitcoins is restricted b the circumstanced created by the existing legislation on anti-money laundering and terrorist financing.
“In order to adapt to the current regulatory requirement, we had to reconsider our policy on local cash trades as well as on the geographical areas where our service is available, among other platform features. As a consequence, advertisement in the cash category (i.e., local cash trades) was disabled in our platform on Saturday, June 1,” the statement goes.
The company also apologized before the users that might have been affected by those measures.
Now the service users have to resort only to fiat payments processed by electronic payment platforms and bank transfers.
It is worth noting that in March the parliament of Finland passed the bill on service providers in the virtual currencies industry and demanded that LocalBitcoins, as well as other cryptocurrency trading platforms, complied with AML requirements.
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