The Finnish Financial Services Authority (FIN-FSA) has registered the LocalBitcoins p2p platform as an official virtual currency provider.
To issue an approval, the regulator demanded that the platform demonstrate the required level:
- the implementation of anti-money laundering measures (AML);
- follow the “know your customer” (KYC) procedures;
- ensuring adequate protection of customer assets;
- compliance of localBitcoins management and key personnel with qualification requirements.
LocalBitcoins CEO Sebastian Sonntag stressed that Finland has a high level of control, which is credible in the global community. According to him, the status of an official provider of digital currency in the country opens up new business opportunities for the platform.
On the way to obtaining a license, LocalBitcoins has introduced a number of measures to strengthen capital controls. For example, in June, the platform removed the option of trading cryptocurrency for cash in person, then introduced user verification.
All this led to a decrease in transaction volumes by more than 30%. However, in countries with volatile currencies such as Argentina or Venezuela, Bitcoin trading volumes at LocalBitcoins are at historic highs.