Trading volumes fell at LocalBitcoins after the introduction of verification

The volume of transactions on the popular p2p platform LocalBitcoins fell by more than 30% after tightening KYC / AML measures.

Last week, the trading volume of bitcoin on the platform amounted to $ 38.49 million, the lowest value since September 2018.

Trading volume at LocalBitcoins in less than a month fell by a third

If we calculate the turnover of the platform in cryptocurrency, then the decline may seem even more significant. So, last week the trading volume amounted to 4595 BTC, which is the lowest figure since June 2013, that is, since the launch of LocalBitcoins. In this context, the fall compared to September (5344 BTC) was 13%.

Activity in Africa and Eastern Europe fell sharply – by 35-40%, while in the countries of the Asia-Pacific region the decline in volumes exceeded 40%. Relatively high trading volumes in Russia, Nigeria, Venezuela and Colombia.

On September 1, new user verification rules for LocalBitcoins, which comply with the new Finnish law, came into force.

If the annual trading volume does not exceed 1000 euros, users must provide their full name, country of residence, email and phone number. If volumes exceed this limit, the site operator will require a complete KYC procedure, which requires the provision of a passport or other identification document.

In total, the new system has four levels of accounts that differ in the available volumes.

Recall that in June of this year, LocalBitcoins eliminated the possibility of selling and buying bitcoin for cash in person. This decision probably also contributed to a decrease in activity on the platform.

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