LocalBitcoins: Darknet-related transactions dropped 70% after adopted AML and KYC regulations in September 2019

According to peer-to-peer cryptocurrency exchange LocalBitcoins, after an effort to dramatically reduce darknet-related transactions in 2020, more than 70% of these types of transactions have dropped significantly between September 2019 and May 2020.

LocalBitcoins: A decline of over 70% from darknet-related transactions

Sharing with Cointelegraph, Jukka Blomberg, chief marketing officer at LocalBitcoins, said:

“The drops come in response to Anti-Money Laundering and Know Your Customer regulations adopted by the platform in September 2019. The calculations are based on blockchain analysis by major crypto analytics firm Elliptic as well as LocalBitcoins’ clustering tools.”

LocalBitcoins experienced a significant decline in the number of Bitcoin transactions in 2019. As such, the weekly Bitcoin transaction volume on the exchange dropped from nearly 14,000 BTC in January 2019 to about 4,000 BTC in January. However, from September 2019 to May 2020, LocalBitcoins saw only a 20% decrease in BTC transaction volume, down from an average of 5,000 BTC to 4,000 BTC in weekly transactions.


Global BTC trading volume on LocalBitcoins | Source: Coin Dance

In addition to the apparent progress in settling illegal transactions on its platform, LocalBitcoins has witnessed some advancements in performance.

LocalBitcoins said:

“Our new customer registrations have surged over 50% since early 2020 – from around 4,000 new daily sign-ups to over 6,000. The rapidly growing new customer numbers naturally are a sign of healthy demand and great future potential.”

LocalBitcoins is a key point for illegal transactions

Quite a lot of opinions say that LocalBitcoins has facilitated a large number of illegal financial transactions. According to a recent report by CodesTrace, LocalBitcoins received more than 99% of criminal funds among Finnish exchanges in the first five months of 2020. Moreover, Finnish exchanges have a related Bitcoin transaction ratio to the highest darknet received for the third consecutive year, with 12% of all BTC coming directly from criminal sources.

Elsewhere, you don’t need to go to darknet-related transactions to get rich quick. Because according to a Bitcoin cultural zine Citadel21, the comic version with hidden clues can lead readers to a bonus of 10,000,000 satoshis (equivalent to 0.1 BTC – about $ 924 at press time). This is the crypto comic by Dim Zayan, a visual artist and Bitcoin enthusiast, called Bulltardia.

Clues to unlocking 10,000,000 satoshis (or 0.10 BTC, worth around $ 924 at press time) will be hidden throughout the serial story that will be released in a few months.

Citadel21 stated:

“Buried in this story, that will unfold in the months ahead, are hidden twelve keys that together will unlock 10 Million Satoshis. Dear reader, hodler or no-coiner, it doesn’t matter, if you follow the badger, through his deeds and capers, you may find his treasure. Buried in this story, at the heart of Bit’s journey, are hidden the twelve keys to 10 Million Satoshis.”

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