LocalBitcoins issued a statement on February 8, saying it would make “major changes” to its user experience following new anti-money laundering (AML) and know-your-customer (KYC) policies. This is after being enacted in its home jurisdiction of Finland.
“The legal requirements are still being delineated but it is already clear that it will bring major changes into the functioning of virtual currency exchanges. The most important changes concerning LocalBitcoins’ users will be related to improving the registration of new accounts and the identity verification processes, introducing wallet withdrawal and trade volume-based verification tiers.”
In the past Bitcoin users of LocalBitcoins have been able to transact in and out of fiat currency without the same constraints often encountered with traditional exchanges.
The platform is already fully legal, however, changes to identification – and therefore privacy – of users has traditionally met with criticism.
The statement concluded:
“We are working to make the transition easy to all users who make legitimate use of our services and already comply with LocalBitcoins’ ToS. We will keep you informed through blog and social media updates and will provide more detailed information on the coming changes during March 2019.”
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