- LocalBitcoins is now licensed by a Finnish regulator.
- The platform had to introduce numerous restrictions to obtain the license.
The Finnish Financial Services Authority (FIN-FSA) registered a p2p platform LocalBitcoins as an authorized virtual currency provider.
The regulator granted the approval as the company satisfied the following requirements to:
- the implementation of anti-money laundering measures (AML);
- the implementation of the “know your customer” (KYC) procedures;
- ensuring adequate protection of customer assets;
- compliance of LocalBitcoins management and key personnel with qualification requirements.
LocalBitcoins CEO Sebastian Sonntag emphasized that Finland has a high level of control that inspires confidence within the global community. The status of an official provider of digital currency in the country opens up new business opportunities for the platform, he added.
In order to obtain a license, LocalBitcoins introduced a number of measures to strengthen capital controls. For example, in June, the platform removed the option of trading cryptocurrency for cash in person and introduced user verification.
These measures resulted in a decrease in transaction volumes by more than 30%. However, in countries with volatile currencies such as Argentina or Venezuela, Bitcoin trading volumes at LocalBitcoins are at historic highs.
Read also: LocalBitcoins trading volumes fell by 30% due to KYC procedures
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