Shopping P2P platform Localbitcoins said that it would introduce new, more stringent requirements for user authentication as part of its commitment to work in accordance with the EU legislation.

The company intends to make “significant changes” in their job after the introduction of new policies, AML/KYC within national jurisdiction – Finland – as the country updates the rules in accordance with EU legislation 5AMLD, which came into force last year.

Localbitcoins stated that “the exact nature of the changes remains uncertain and is still under development”, and also said that further details will be announced in March.

“Legislative requirements are still being developed, but it is already clear that it will make major changes to the work of cryptocurrency exchanges,” the statement said.

For a long time Localbitcoins has maintained a reputation as a platform for the exchange of bitcoin for Fiat currency with no restrictions that usually accompany such operations on cryptocurrency exchanges.

Despite the fact that the platform is already working in full accordance with the law, changes in identification and hence user privacy have traditionally been criticized.

“The most important changes concerning users of Localbitcoins, will be associated with a change in the registration process of new accounts and processes for identity verification, the implementation of several levels of withdrawal from the purse and check the volume of trade,” – said in a statement.

In some jurisdictions, Localbitcoins is very popular in terms of economic and political instability. In early February, Venezuela has set new records P2P trading of bitcoin against the background of the new regulation. P2P markets of Singapore and Eastern Europe also reached record trading volumes. It is unclear how the new identification requirements will affect these markets.

According to the Coin Dance over the past week the turnover platform Localbitcoins was just over 14 500 BTC ($52 million) worldwide.

Discuss current news and events on the Forum