To improve AML and KYC requirements, Localbitcoins added multilayer customer verification to its crypto exchange. The peer-to-peer crypto exchange follows Finland’s Financial Supervisory Authority (FSA) mandating supervision over exchange operations.
Over the last two years, Finland’s regulations and newly introduced policies have made it harder for many crypto businesses to allow trading without verification. In February, Localbitcoins notified customers that changes were coming due to the 5th Anti-Money Laundering Directive (5AMLD) that was enforced by the European Union. Now, this week, the company based in Southern Finland says the FSA’s new exchange supervision mandate has made it impose even stricter AML/KYC guidelines.
The company’s blog post on March 25 details that Localbitcoins will soon be “supervised” by the country’s FSA. The blog post adds that the Virtual Currency Service Providers (VCSP) Act will provide legal status for cryptocurrencies. “[The VCSP Act] should improve significantly Bitcoin’s standing as a viable and legit financial network,” Localbitcoins announcement notes. The trading platform’s post also explains that the team has launched a new registration process and users will still be able to begin trading the day they sign up. The new system administered will inhibit the creation of phony accounts as well.
The customer verification for BTC trading will be spread to 4 levels and all the corporate accounts would have to add another specific verification method.