Anonymous signing up for crypto exchanges in the EU could soon be a thing of the past. The provider LocalBitcoins shows where the journey can go.
LocalBitcoins responds faster than other platforms
From the beginning of 2020, the European Union will demand stricter measures in the fight against criminals, and in particular money laundering. The new guidelines and legal framework will also apply to crypto exchanges that allow investors to trade Bitcoin, Ethereum or other digital currencies. In anticipation, the company LocalBitcoins is currently reacting to the new EU legislation under the generic term 5th-Anti-Money-Laundering. The reason given by the company in its announcement is above all the premature implementation of the new legislation in Finland.
Home country Finland introduces new rules before the finish date
The country needed just over a year less to change national laws and put the new Anti-Money Laundering Act into action nearly a year earlier. LocalBitcoins acts as a platform for off-exchange Bitcoin trading and exists since the year 2011. Previously, the service provider was popular because of the lack of verification for customers with many crypto fans. However, the new 5MLD regulation will have a dramatic impact in this regard – and this is precisely what the EU Commission has been aiming for. Users should have to identify themselves in the future in order to be able to register and register for the trade. This is not a specific crypto case law, but rather the extension of the rules generally applicable to the financial sector.
The fight against money laundering costs customers anonymity
Instead of as before, platform customers can no longer just sign up for a trade with a valid e-mail address. A valid identification document is then required as proof of identity. Exactly what the future requirements look like is not yet known. The company emphasizes, however, that with the new compulsory information an optimization of the platform should also be carried out in the interests of the customers. Either way, the message means upcoming cuts in anonymity, which until now has been a major argument in favor of Litecoin, other coins, and long before Bitcoin. The changes will be implemented by the end of March at the latest. Inevitably, other providers will have to react by the deadline.
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