February 5, 2023

LocalBitcoins Obtained Virtual Currency Provider License

LocalBitcoins Obtained Virtual Currency Provider License

The popular cryptocurrency platform LocalBitcoins received a financial license in Finland. From now on recognized by the official provider of virtual currency.

Legal Status LocalBitcoins

The platform has long begun to prepare to receivelicenses. If earlier it was possible to sell and buy cryptocurrency without verification, now it is required. In addition, the opportunity to trade digital currencies for cash at a meeting has disappeared.

Of course, users did not like it. After the prohibition of anonymous trading, volumes on the crypto exchange fell 30%, but obtaining a license was more important for the company. Now that the Finnish Financial Services Authority (FIN-FSA) has granted the platform an official status, new opportunities are open for it to expand. For example, the exchange will be able to legally operate in countries with tight regulation.

However, Finland’s regulator has forcedcompany to seriously modify their business. In addition to introducing and controlling AML / KYC, the exchange had to convince FIN-FSA that all user assets were stored in accordance with high security standards, and the key personnel of LocalBitcoins consist of professionals who know their business.

Thanks to this, the exchange is now not only responsibleFinnish, but also international requirements. Whether this will help the company to capture new markets and increase volumes - time will tell, but the rejection of anonymity in itself does not cause delight. The situation with LocalBitcoins shows us that sooner or later the entire industry will lose its privacy, and all users will have to go through verification for any transactions.