- LocalBitcoins has taken a further step towards legitimacy by implementing Elliiptic’s blockchain tracking software into its platform
- The former home of illicit crypto trading has been on a mission to change its image since 2019
- The raft of changes ensure that LocalBitcoins is compliant with new AML/KY regulations
LocalBitcoins, once the home of illicit Bitcoin trading on the internet, has taken another step towards legitimacy by implementing Elliptic’s blockchain transaction tracking service. The peer-to-peer exchange, famous for helping Bitcoin buyers and sellers evade the authorities when doing their deals in years gone by, has acquiesced to the recent demands placed upon it by powerful new KYC/AML regulations and has added a host of anti-money laundering protocols in order remain above the law. This latest addition will allow LocalBitcoins to flag up illegal use of its platform which will in turn “drive cost savings and reduce risk.”
We’re pleased to announce today that @LocalBitcoins, the world’s leading peer-to-peer (P2P) #bitcoin exchange, has adopted @elliptic‘s #blockchain monitoring solutions to manage risk and support growth!
— elliptic (@elliptic) July 28, 2020
LocalBitcoins – The Rogue Steps Into Line
LocalBitcoins was founded in 2012 and quickly became the place where Bitcoin buyers and sellers would arrange deals, which would then take place person-to-person. This method tended to allow buyers and sellers to evade the increasingly watchful eye of the authorities, but this didn’t last forever – starting in 2014, police began posing as buyers on the website in the hopes of trapping sellers conducting business illegally, in particular those associated with websites like Silk Road who were trying to launder drug money. Several such cases are still going through the court system today.
Since ownership of LocalBitcoins changed hands in September 2019, the company has made strides to become a more legitimate exchange – they banned ‘Bitcoin for cash’ transactions, increased identity checks, and obtained a Finnish virtual currency license all within the space of a few weeks. Now the company has taken a further step toward trying to remain relevant in the crypto exchange space by adding Elliptic’s services to its roster.
Elliptic Helping Exchanges Get Compliant
Elliptic, who were named one of the World Economic Forum’s top tech pioneers of 2020 last month, will add integrate their Elliptic Navigator and Elliptic Lens services into LocalBitcoins’ platform, which the company’s co-founder and Chief Scientist Tom Robinson said would lead to “more stringent, technology-enabled anti-money laundering controls” on the exchange.
Sebastian Sonntag, CEO of LocalBitcoins, added that the exchange was “pleased to be partnering with the global leader in blockchain monitoring” which would “enable us to achieve the highest levels of compliance while increasing operational efficiency and reducing costs.”