Regulatory Watchdog Supervision: The Helsinki based peer-to-peer Cryptocurrency exchange; Localbitcoins have announced that it is adding various identification processes aiming to improve AML and KYC requirements of the exchange. The new regulation was intended to be added following the Finland’s Financial Supervisory Authority (FSA), Regulatory Watchdog who has mandated strict supervision over the operations of the exchange. The Localbitcoins have been conducting peer-to-peer Bitcoin exchange all throughout the major cities around the world. Earlier, it used to operate in a private method where the people or the traders could easily swap the fiat currency for Bitcoins or Bitcoins for fiat money without the requirement of KYC processes involved with the other exchanges.
In last two years, the Finland’s regulations and the newly introduced policies have made it tougher for several crypto businesses to permit trading without verification. In February this year, the Localbitcoins have notified their customers that the modifications to the existing method has come due to the 5th Anti-Money Laundering Directive (5AMLD) enforced by the European Union. According to a Southern Finland based company, the new exchange supervision of FSA has mandated to impose strict KYC and AML guidelines.
In the company blog post published on 25th of March, it has been clearly mentioned that the country’s FSA will soon supervise the Localbitcoins and that the Virtual Currency Service Providers Act (VCSP) will provide legal status for the Cryptocurrencies. The same blog post has revealed that a new registration process has been launched where the users will be able to initiate trading on the very same day they sign up. The new system is likely to stop the creation of fake accounts as well. It has also been revealed that the new treasury guidelines of the country mentioned that the officials cannot store the seized Bitcoins on an exchange and have to use the cold storage.