Elena Tonoyan, Chief Operating Officer of LocalBitcoins, explains how the oldest Bitcoin stock exchange has peer-to-peer criminal activity on the platform.

According to CypherTrace, as of 2019, LocalBitcoins is the stock exchange that receives the largest number of criminal funds for three consecutive years.

Tonoyan assures that 2020 results will be completely different, and we are talking about the strict KYC / AML procedure adopted by the exchange last September.

The results are already visible. Citing the latest data, Tonoyan claims that volumes sent to dark markets have already decreased by 70%.

When asked about verified LocalBitcoins accounts sold in Russia's Darknet market, Tonoyan said she is aware of this issue.

She said: “We will block these accounts as soon as we determine that they have been sold or compromised.”

Tonoyan acknowledged that by tightening verification procedures, the stock exchange lost its main competitive advantage – anonymity of its clients.

This appears to be the main reason for the 50% decrease in trading volume in the months following the implementation of the measures. But Tonoyan believed that the settlement was worth it.

In the early days, people used LocalBitcoins because it was unknown. But today they use LocalBitcoins because they want safe and legal services to buy bitcoins. ”

Source: CoinTelegraph