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Peer-to-peer cryptocurrency exchange and crypto ATM manufacturer LocalBitcoins recently issued a statement about anti-money laundering laws and compliance with the 5th AML directive of the European Union. The firm said in their statement that they want to work on compliance while building trust in the crypto market space. From the beginning, trust and confidence in the cryptocurrencies have been hindered by their attachment to criminal enterprises and money laundering operations through digital currencies.
Considering the situation, many countries and nations around the world have seen a mobilization in the governing authorities to put a leash on the crypto space to control the acts of money laundering and fraud. The European Union has been working on new regulations and laws regarding the cryptocurrencies.
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 firm also 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,” read the statement by the firm released recently. They said that the most important and notable change that their users will see is with the registration of new accounts, as users will now have to go through an identity verification process; there will also be a wallet withdrawal and trade volume-based tiers for verification.
The statement further reads:
“We are working to make the transition easy to all users who make legitimate use of our services and already comply with LocalBitcoins’ (terms of service) ToS. We will keep you informed through the blog and social media updates and will provide more detailed information on the coming changes during March 2019.”
The firm insisted on their commitment to ensuring that the users who are legitimately using the service and comply with the current Terms of Service can go through the transformation smoothly.