Peer-to-peer cryptocurrency exchange LocalBitcoins recently issued a statement about anti-money laundering laws and compliance with the 5th AML Directive of the European Union.
The company said that it wants to work on compliance while building trust.
What Is the 5th AMLD?
The European Commission enforced the 5th Anti-Money Laundering Directive (Directive 2018/843 of the European Union or the 5AMLD) in July 2018.
The directive marked the first time that the EU took into consideration virtual currencies.
It covers both digital currency exchanges as well as wallet service providers.
Member states were given time till January 2020 to implement the directive.
LocalBitcoins is based in Finland which has already drafted new regulations for virtual currency services, and its anti-money laundering act is now in sync with the 5AMLD.
In its recent statement, LocalBitcoins noted that it had been a “pioneer in advising the regulatory agencies in this process” as well as adapting to the crypto industries new standards of compliance.
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.
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.
Helping to Promote Trust
LocalBitcoins noted that it aims to promote legitimacy, trust, and maturity in the Bitcoin ecosystem and become a reference in compliance.
It also aims to make digital currency more widely accepted while helping to fight the criminal use of the coin.
“We 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.”
The exchange said that the most important change that their users will note is while registering new accounts.
Users will now have to go through an identity verification process. There will be wallet withdrawal and trade volume-based tiers for verification.
The exchange further noted that it is working to ensure that all users who use the platform legitimately and comply with its existing Terms of Service can go through the transformation smoothly.
It said that it would keep updating the users via its blog and social media platforms. More details about the transformation will be revealed in March.