According to LocalBitcoins, transactions of the darknet on the platform decreased by 70% after implementation in September 2019 regulations, AML and KYC.
LocalBitcoins, one of the most popular p2p cryptocurrency exchanges, says that she was able to significantly reduce the amount of criminal assets on its platform in 2020, reports Cointelegraph.
The platform recorded a decline of more than 70% of transactions in the darknet markets between September 2019 and may 2020, says LocalBitcoins.
Jukka Blomberg (Jukka Blomberg), chief marketing Director of LocalBitcoins, said that the decline in activity occurred due to the introduction of rules for combating money-laundering (AML) and know your customer (KYC), adopted by the platform in September 2019.
“The calculations are based on blockchain analysis of a large cryptanalytic company Elliptic, as well as their own “tools clustering,” LocalBitcoins”, – said platform.
The reduction of transactions by 70% from the darknet, it may be minor, because LocalBitcoins in 2019 have experienced a significant reduction in the trade of bitcoins (BTC). Thus, the weekly trading volume of bitcoin on the exchange has decreased from 14 000 BTC in January 2019 to about 4 000 BTC in January 2020, according to the Coin Dance.
However, in the period from September 2019 to may 2020, LocalBitcoins is observed only a 20% decrease in trading volume in BTC, down from an average of 5000 BTC to 4000 BTC in the weekly auction.
The volume of trading BTC on LocalBitcoins. Source: Coin Dance
LocalBitcoins claims that in recent months there has been a healthy growth. Along with the obvious progress in combating illegal transactions in its platform, LocalBitcoins is watching a particular result in the work, said Blomberg.
“Looking at the last 2-3 months, we can already see a healthy growth trend that speaks to the wide demand”, – the expert added.
In LocalBitcoins reported that the number of new clients increased by 50% since the beginning of 2020 – from 4,000 to more than six thousand new daily registrations. “A growing number of new customers is a sign of healthy demand and the great potential for LocalBitcoins in the future,” said Blomberg.
According to analysts, LocalBitcoins is a major platform for illegal transactions
Some cryptanalysts say that LocalBitcoins promote illegal financial transactions.
According to the latest report of the company CipherTrace, LocalBitcoins got more than 99% of criminal funds to the Finnish markets during the first five months of 2020. In addition, the Finnish stock exchanges have a high proportion of criminal BTC received for the third consecutive year, with 12% of all BTC come directly from criminal sources.
At the beginning of 2020 development company risks IntSights issued a progress report stating that P2P platforms such as LocalBitcoins, contribute to money laundering. Startup stressed that such illegal actions are often associated with a significant lack of standards.
The Finnish company LocalBitcoins works only with Finnish authorities for the regulation of cryptocurrencies, said Blomberg. Last year LocalBitcoins said that Finland is actively working on new legislation makes changes to its law on money laundering in accordance with the regulations of the European Union to combat money laundering.
As reported Coinews, built-in feature of importing contacts Telegram was used to crack akkauntov and caused a leak in the darknet of the personal data of millions of users.
The portal Coinews wrote that peer-to-peer trade of bitcoin in Africa, shows new highs, having increased twice in comparison with 2017 year.
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