International peer-to-peer (P2P) crypto exchange LocalBitcoins announced on its blog that it will become supervised by the Financial Supervisory Authority of Finland. In order to comply, they have changed the verification procedure for existing users and amended registration rules for new users.
The Finnish Parliament approved a proposal to provide legal status for crypto assets. The new law, The Virtual Currency Service Providers Act, is an amendment to the Act on Detecting and Preventing Money Laundering and Terrorist Financing, which will bring crypto companies under the anti-money laundering law (AML) supervised by the Financial Supervisory Authority. It will come into effect in November this year. LocalBitcoins say that this should “significantly” improve Bitcoin’s standing as a viable and legitimate financial network.
Steps Are Being Taken To Make Things Easy For New Users
“LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations,” they say.
The launch of a new account registration process where users can verify basic information during sign-up, will make it easier for the newcomer to find trading partners from day one. There are also efforts being made to improve identity verification, including that of corporate accounts. They are hoping that this will bring an increase in customers which will appeal to advertisers as well as limiting the creation of “illegitimate accounts”.
LocalBitcoins was hacked in January this year. The company detected a security breach that allowed “unauthorized sources” to access and send transactions from a number of accounts.
They said that they had been able to identify the problem which was “related to a feature powered by a third party software”, and stop the attack. Six users were affected and they temporarily closed the forum feature for “security reasons”.
They recommended that all users enable two factor authentication,where users go through two layers of security before being granted access to an account or system, to prevent unauthorized account access in the case of any future breach.