localbitcoins | AML regulation

[hugeblack]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

[joniboini]

Can't blame them for this (as long as they really follow the regulations). If exchanges don't follow the regulations, their owner or the site operation can be killed by the authorities.

For those who look for alternatives, maybe trading in this forum with escrow is one of the best choice though it's not the best way to trade.

[magneto]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

It's not a particularly surprising thing that they are doing.

In the past, they've already tightened up on KYC/AML in numerous occasions by first asking for KYC for all advertisement listings, then asking for KYC for traders with significant volume. This new policy that they may be implementing right now is simply a confirmation of the regulatory pressures that are put on them, and an extension to previous policies.

Whether they're going to go for the home run and just ask everyone to flat out identify themselves, I don't know. Perhaps it's more likely they'll just ask more personal information without necessarily requiring proof of them when you sign up, up to a certain threshold. But this new policy may well lead to more people jumping ship and looking for alternatives, but the fate of each platform will be similar.

[proTECH77]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

Since this was requested by the EU's Anti-Money Laundering, nothing should be regretted because they are strictly following instructions in regards to the ongoing regulations. Sincerely speaking, basic information from customers could be okay from Localbitcoins than the strict KYC which has been done by many other exchanges.

[LeGaulois]

I am ready to bet that websites like LocalBitcoin will be considered and so regulated like the traditional exchanges like Kraken, Coinbase, Bitstamp, hence the different changes in their AML/KYC policies...
And since most European countries will ask to cryptos users to report their exchange accounts, gains/loss... It's already started to be voted and added in few EU countries. I wonder how many EU users will leave.

[leowonderful]

I expect many users are going to move to another similar P2P exchange site like Paxful, but who knows how long it'll be 'till even Paxful starts to request KYC for all of its users (they don't currently unless you want to become a 'verified trader' IIRC). Might not even be that bad if LBC's not asking for heaps of information like traditional centralized exchanges do, but we'll have to see. They're also implementing different 'levels' of verification as well with different amounts of volume available for each level, so hopefully those who choose to minimally verify themselves have at least some level of access to the site still.

[dothebeats]

I know that there will really come a time wherein LBC would succumb to KYC laws and tightening regulations imposed by regulatory bodies, and it's just a matter of time before Paxful and other P2P exchanges get hurt by the same thing. I think this is, in part, just okay to seal the legality of bitcoin in the industry, given that it's still being regarded as the primary vehicle for money laundering and other illicit activities. Anyhow, I know that P2P exchanges will still rise and perhaps avoid such regulations being imposed on to them but then again, it's only a matter of time before regulations turn the tides once again.

[buwaytress]

I'm actually really impressed by how long they've managed to stand their ground, especially when their business entity in Finland's long been there in plain sight.

I'm still able to see non-verified traders making offers, but this was probably a long time coming so their days are numbered. I myself have been trading for a while there now and looking to migrate slowly to alternatives, so if this AML procedure cuts me out, I'll just have to go cold turkey.

Guys like Bisq should see a steady flow of new users once the exodus starts.

[larim007]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

Nowdays there is a lot of options for selling/buying crypto for fiat securely. Even for EU residents. Dont see any problem with regulation coming to localbitcoins. You can use other options instead of localbitcoins if you dont agree witt KYC/AML policy.

[Forsmagor]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

Nowdays there is a lot of options for selling/buying crypto for fiat securely. Even for EU residents. Dont see any problem with regulation coming to localbitcoins. You can use other options instead of localbitcoins if you dont agree witt KYC/AML policy.

Like what? Personally me has no idea how to buy bitcoin legally and in a big amount in EU. The only way is Binance Jersey BUT it is very complicated due to the fact you can not be applied for using the exchnage for unknown reasons, there were several cases described on reddit already. Moreover it has limits for purchase. Thats why localbitcoins was and still stay the best option for purchase the crypto but this KYC/AML is very frustrating...

[larim007]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

Nowdays there is a lot of options for selling/buying crypto for fiat securely. Even for EU residents. Dont see any problem with regulation coming to localbitcoins. You can use other options instead of localbitcoins if you dont agree witt KYC/AML policy.

Like what? Personally me has no idea how to buy bitcoin legally and in a big amount in EU. The only way is Binance Jersey BUT it is very complicated due to the fact you can not be applied for using the exchnage for unknown reasons, there were several cases described on reddit already. Moreover it has limits for purchase. Thats why localbitcoins was and still stay the best option for purchase the crypto but this KYC/AML is very frustrating...

Well, Im using quppy.com now. Pretty simple way to open a bank account in EU bank for any purpose you need, not just for having deals with crypto. No limits + fast support is perfect mix that makes this app a real competitor for localbitcoins if you need to sell/buy crypto.
PS just a service that I use

[massonnito_jj]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

The platform has responded to the EU's anti-money laundering pressure "Especially the Finnish Parliament," although details of the verification have not been made clear, the platform will hurt to sacrifice some privacy.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

Nowdays there is a lot of options for selling/buying crypto for fiat securely. Even for EU residents. Dont see any problem with regulation coming to localbitcoins. You can use other options instead of localbitcoins if you dont agree witt KYC/AML policy.

Like what? Personally me has no idea how to buy bitcoin legally and in a big amount in EU. The only way is Binance Jersey BUT it is very complicated due to the fact you can not be applied for using the exchnage for unknown reasons, there were several cases described on reddit already. Moreover it has limits for purchase. Thats why localbitcoins was and still stay the best option for purchase the crypto but this KYC/AML is very frustrating...

Well, Im using quppy.com now. Pretty simple way to open a bank account in EU bank for any purpose you need, not just for having deals with crypto. No limits + fast support is perfect mix that makes this app a real competitor for localbitcoins if you need to sell/buy crypto.
PS just a service that I use

I used Quppy service already. It is nice but they also ask for KYC/AML. Opening account in EU bank could not be otherwise. Moreover it is mostly suitable for the companies who wanna withdraw funds from the ICO or smth like that. LocalBitcoins is much more convenient for individuals. IMHO

[AdolfinWolf]

Like what? Personally me has no idea how to buy bitcoin legally and in a big amount in EU. The only way is Binance Jersey BUT it is very complicated due to the fact you can not be applied for using the exchnage for unknown reasons, there were several cases described on reddit already. Moreover it has limits for purchase. Thats why localbitcoins was and still stay the best option for purchase the crypto but this KYC/AML is very frustrating...

You could use other P2P exchanges that don't have mandatory KYC yet for their customers, such as https://paxful.com

Or maybe buy CryptoVoucher.io' vouchers with your bank account. Not sure how much constitutes a large amount, and when they ask for KYC. (They work with SEPA i'm pretty sure.)

Well, Im using quppy.com now. Pretty simple way to open a bank account in EU bank for any purpose you need, not just for having deals with crypto. No limits + fast support is perfect mix that makes this app a real competitor for localbitcoins if you need to sell/buy crypto.
PS just a service that I use

Is it a bank account? Looks like a credit card to me-- which probably also requires KYC, doesn't it?

[hugeblack]

-snip-

You could use other P2P exchanges that don't have mandatory KYC yet for their customers, such as https://paxful.com
[/quote]
Paxful is not going to be a catastrophic choice. I expect they will be doing very hard to verify the identity. Localbitcoin will do so smoothly in compliance with EU decisions.
It was announced on 2/4 that KYC/AML will be verified using AI systems, in cooperation with Jumio.

The limit for this is $ 1,500 or 10000 for proof of address.

But with the aid of Jumio, the platform will be capable of improving its KYC and AML procedures and compliance program in every operating country through a biometric facial recognition feature provided by Jumio.

[Patatas]

Localbitcoins is one of the oldest markets to buy/sell BTC, and perhaps one of the last places where you can get your coins anonymously.

Anonymously? I don't think so. Most of the payment methods on LBC are Bank/Wire Transfers. I doubt there is any anonymity there when you're literally sending your bank details to the seller/buyer.

As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts.

[/quote]
That is good indeed! Way better than asking for KYC's when a high volume withdrawal is requested like other exchanges.

[PrimeNumber7]

The most interesting part of the policy is:

inhibiting the creation of illegitimate accounts.

It is pretty well known that a problem on LBC is the use of sock puppet accounts to boost various scores/ratings, either done yourself, or purchased from some third party "SEO boosting" service.

I believe this is being done to combat this kind of abuse.

[gentlemand]

Anywhere that custodies will have to yield to this eventually. I'm surprised they lasted as long as they have. What'll be interesting to observe will be the places that advertise or index P2P trades only.

[BitHodler]

Anonymously? I don't think so. Most of the payment methods on LBC are Bank/Wire Transfers. I doubt there is any anonymity there when you're literally sending your bank details to the seller/buyer.

Correct. If you're not into meeting up with people to conduct transactions face to face, you're basically agreeing to leaving a digital trail behind the bank or whatever other service can use against you.

What people don't understand is that it in most countries is against the law to act as money transmitter, and IIRC, there have already been articles covering how certain local traders were arrested for selling Bitcoin.

That being said, I too would prefer a wire transfer purchase or sale when dealing with LBC. I am too paranoid to meet up with someone with how Bitcoin is such a wanted asset due to its price. Crypto coiners are walking targets.