LocalBitcoins has officially become a virtual currency provider, starting at the beginning of November 2019 after getting the green light from the Finnish Financial Services Authority (FIN-FSA), according to its blog post on Nov. 11.
In order to be eligible to enter FIN-FSA, during the registration process, FIN-FSA requires that LocalBitcoins must demonstrate that it has established regulations to implement the Anti-Money Laundering (AML) process, and enclosed with Know Your Customers (KYC) procedures. In addition, one of the requirements for Finland to allow operations in their country is LocalBitcoins which must have effective safeguarding mechanisms for customers’ assets.
FIN-FSA also demands management and key position holders to implement a number of criteria to gain authority over the roles they will serve.
LocalBitcoins registered to be an official virtual currency provider as part of the process that facilitated their long-term growth, so LocalBitcoins invested in the reliability, transparency, and accountability of its Bitcoin exchange service around the globe. Finland is known as a country with a high degree of trust and control in the community worldwide.
Moreover, controls in the financial sector are of exceptionally high quality and customer position is well protected. Therefore, LocalBitcoins receives new business opportunities when getting a license from FIN-FSA.
“Finland is a well-functioning society, which holds trust and confidence at high levels. At the same time, the controls in the financial sector are of particularly high quality and the position of the clients is well protected. These themes are also at the heart of LocalBitcoins’ operations”, said Sebastian Sonntag, CEO.
He added that “operating as the official supplier of virtual currency strengthens our position and allows us to continue to operate in a responsible and reliable way. At the same time, it opens our new business opportunities”.
Previously, LocalBitcoins imprinted on activity in a politically disturbed country, especially Venezuela. With such an unstable political atmosphere, many Venezuelan citizens do not feel comfortable sharing their financial information with the government. Therefore, LocalBitcoins is considered as a measure that allows citizens to break capital controls on money in this country.
In early June, Localbitcoins stopped offering direct cash transactions which shocked crypto enthusiasts. At that time, all pending fiat transactions were canceled, leaving cash-strapped traders in need and looking for other avenues.
Something about LocalBitcoins
LocalBitcoins is a peer-to-peer Bitcoin trading platform that helps merchants and buyers from around the world collect and trade Bitcoin. Localbitcoins act like a decentralized exchange.
Founded in 2012 by Jeremiah Kangas, LocalBitcoins has grown to be one of the largest Bitcoin exchanges in the world. The company is headquartered in Helsinki, Finland, operating in more than 200 countries and 14,000 cities.
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