Regulation

LocalBitcoins will comply with the EU’s new anti-money laundering laws

February 12, 2019, 4:46PM EDT

LocalBitcoins, the peer-to-peer over-the-counter bitcoin marketplace, announced in a blog post that it would comply with the new anti-money laundering directive enacted by the European Union. The directive, also known as 5AMLD, establishes a central public database of companies and their owners. 5AMLD also brings virtual cryptocurrencies under the microscope of the EU's anti-money laundering regulations.

According to LocalBitcoins, "even though EU member states are given a transposition period until January 2020 for implementing the directive, Finland has already drafted new legislation concerning virtual currency service." As a Finnish company, LocalBitcoins will adapt compliance standards to fit the legislation. LocalBitcoins users will experience changes concerning new account registrations, identity verification, and wallet withdrawal tiers. While these changes may impact the platform's appeal to its users, namely its privacy features, LocalBitcoins states that they are "confident that the new measures will bring significant benefits to our user base, promoting a safer trading environment and acting proactively in preventing fraud."