• LocalBitcoins experienced a sharp decrease in trading volumes.
  • New KYC requirements came into force as of September 1.

The trading volumes on LocalBitcoins fell by more than 30% after the popular p2p platform for buying and selling digital assets tightening KYC / AML measures.

Only $38.49 million worth of Bitcoins were traded on LocalBitcoins during the previous week, which is the lowest value since September 2018. Trading volume at LocalBitcoins fell by more than 30% in less than a month.

When calculated in cryptocurrency, the decline of the trading volumes is even more significant. Thus, the trading volume amounted to 4595 BTC in the previous week, which is the lowest figure since the launch of LocalBitcoins in June 2013. On a month-to-month basis, the decrease amounted to 13%.

Africa and Eastern Europe registered the decrease by 35-40%, while in the countries of the Asia-Pacific region the trading volumes declined by more than 40%. Relatively high trading volumes are registered in Russia, Nigeria, Venezuela and Colombia.

New user verification procedures came into effect on September 1. The platform explained the tightened KYC measures by the requirements of new Finnish law.

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 means that users will have to provide a passport or other identification document.

There are four levels of accounts with different verification requirements.

Notably, last June LocalBitcoins scraped the option of buying and selling bitcoins in person. Allegedly, this decision also contributed to a decrease in activity on the platform.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC bulls may hit a brick wall on approach to $9,800

Bitcoin (BTC) extended the recovery to trade at $9,750 at the time of writing. The first digital asset bottomed at $9,300 on February 19 amid massive sell-off and managed to regain some ground since that time. 

More Bitcoin News

Ripple Price Weekly Forecast: XRP/USD road to $0.35 mapped

As the week grinds toa halt, cryptocurrencies are rolling in a positive direction. The positive resonation comes after a couple of days that saw bulls paralyzed in the cryptocurrency market.

More Ripple News

Cardano launched hardfork OBFT; ADA/USD extends the recovery

Cardano (ADA), now the 11th largest digital asset with the current market value of $1.5 billion, has gained 2.7% in recent 24 hours to trade at $0.0590 at the time of writing.

More Cardano News

BCH/USD sprints to $380 amid development tax disagreements

Bitcoin Cash explored the region at $350 as I discussed in the previous article. However, the bulls quickly entered the market ready to buy low and push the price upwards. BCH/USD is already in the green ...

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls plot the revenge

Bitcoin's market capitalization settled at $176 billion, which is 62.8% of the total digital assets market.

Read the weekly forecast

BTC

ETH

XRP