Komal Joshi · Oct 20, 2020 . 6min read
LocalBitcoins Integrates Elliptic for Cryptocurrency Transactions Compliance
One of the foremost peer-to-peer cryptocurrency exchange, LocalBitcoins integrates Elliptic's crypto tracing technology for compliance.
By Victor Ugochukwu · Jul 28, 2020 . 8min read
One of the foremost peer-to-peer cryptocurrency exchange, LocalBitcoins integrates Elliptic’s crypto tracing technology for the compliance of cryptocurrency transactions.
Elliptic made this known in a recent press release announced on its blog. This partnership will lead to LocalBitcoins applying Elliptic’s suite of blockchain monitoring tools. This helps to prevent the illicit use of its platform and comply with regulations such as the EU’s 5th Money Laundering Directive (5AMLD) and know-your-customer (KYC) regulations. By integrating with Elliptic Navigator to screen crypto transactions, and Elliptic Lens to screen wallets, LocalBitcoins have now automated their compliance and anti-fraud processes to drive cost savings and reduce risk.
Speaking on this development, Sebastian Sonntag, CEO of LocalBitcoins said
We are pleased to be partnering with the global leader in blockchain monitoring. Elliptic will enable us to achieve the highest levels of compliance while increasing operational efficiency and reducing costs. We will continue to invest heavily in AML and KYC to maintain a secure and trusted platform for our valued customers.Sebastian Sonntag, CEO of LocalBitcoins
Elliptic demystifies complex crypto-related transactions globally bagging numerous awards
Elliptic is a proprietary database that delivers auditable proof of identity for millions of addresses in multiple cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash, Litecoin & others across thousands of real-world entities. Its suite of tools helps to uncover complex relationships between multiple entities with precision and complete transparency. In fact, when police in the UK wanted to catch a dark web dealer selling sizeable quantities of MDMA, they contacted the company. Elliptic has bagged different awards like ISID Award of 2019, Technology Pioneers 2020 from World Economic Forum and many others.
LocalBitcoins is a peer-to-peer cryptocurrency exchange which allows Bitcoin traders to trade between themselves. The platform acts as the escrow for users to hedge against risks of fraud from their fellow transacting party. It launched a new verification system last year to combat Anti-Money Laundering tendencies on its platform. However, many within the cryptocurrency space consider it anti-crypto.
Paxful has overtaken LocalBitcoins as the leading P2P exchange
Paxful has capitalized on this perceived aversion to raking in users especially with the latest growth reported in developing countries. Even though LocalBitcoins was one of the first P2P exchange out there, it has now been overtaken by Paxful.
Comparing volume from both LocalBitcoins and Paxful shows this. LocalBitcoins was established in 2012 and recorded its highest volume in 2017 during the peak of Bitcoin price.
Ray Youssef founded Paxful in 2015. Recording massive growth, Paxful has become the global leader in P2P trading with its highest volume recorded in June of this year.
Will LocalBitcoins integrating Elliptic further impact its drop in volume from its competitor?
It remains whether this development will further impact LocalBitcoins weekly volume. From a cause and effect perspective and as reported in the press release, stringent KYC/AML has led to a 50% reduction in the volume of crypto assets moving from dark markets to peer-to-peer exchanges.