The leading peer-to-peer crypto exchange LocalBitcoins has added two blockchain-tracing tools from analytics company Elliptic. The peer-to-peer adopted a blockchain tool to continue its mission to chip away at criminal crypto cashouts. The peer-to-peer exchange announced Tuesday that it’s using Elliptic’s Navigator risk analysis tool and Lens wallet screener to crack down on illicit crypto. Blockchain analysis firms have previously claimed that LocalBitcoins receives the bulk of Finland’s criminal coins.
LocalBitcoin continues to implement AML regulations.
The Helsinki-based peer-to-peer crypto exchange has been bolstering its anti-money laundering (AML) safeguards in response to the European Union’s AMLD5 and tough new Finnish business regulations, both of which turned up the heat on regional crypto businesses. The peer-to-peer crypto exchange has already taken many steps to tackle the problem of illicit funds that are laundered on the peer-to-peer platforms. In the run-up to Finland’s enforcement deadlines, the platform ditched cash-for-crypto trading and added mandatory identity verification for its customers. It also banned Iranian users from trading bitcoin, likely in response to US sanctions.
LocalBitcoins reported a 70% drop in the darknet related transactions.
LocalBitcoins had earlier reported that it has managed to significantly reduce the amount of darknet-related transactions done using the platform. LocalBitcoins claimed that it had seen a decline of over 70% in transactions from darknet markets between September 2019 and May 2020. According to the Helsinki-based peer-to-peer platform, the drop in darknet-related transactions has come in response to Anti-Money Laundering and Know Your Customer regulations adopted by the platform in September last year. As reported earlier, according to a CipherTrace report, the peer-to-peer platform LocalBitcoins received over 99% of criminal funds among Finnish exchanges in the first five months of 2020.
