- Number of registrations “remained stable, no changes are seen in November
- LocalEthereum & LocalCrytpos Make an Entry
From 15,000 BTC in early September, the number of bitcoins changing hands on LocalBitcoins has dropped down to almost 4,000 BTC, registering a drop of 73% in the global volume on the platform.
These volumes are less than even that registered in 2018 when the volume remained above 5,000 BTC. It was in early 2013 and mid-2014, the volume dropped below 2k BTC and 4k BTC respectively.
This drop came after in late August, the peer-to-peer exchange extended its know-your-customer/anti-money-laundering (KYC/AML) requirements. Earlier this year, LocalBitcoins enforced the first set of KYC requirements after getting registered as a Virtual Currency Provider by the Finnish Financial Supervisory Authority.
These changes came as part of the exchange's effort to promote “Bitcoin as a viable and legitimate financial system” and having a “firm stance against the criminal usages of cryptocurrency,” the primary concern of the regulators.
No Changes seen in November
LocalBitcoins is not the only one recording a loss in trading volume. It has been falling across the board.
Sebastian Sonntag, the CEO of LocalBitcoins recently in an interview with LearnBonds.com however shared that the number of registrations on the exchange has “remained stable.” Sonntag said,
“We have been counting with 4000 to 5000 new users signing up to LocalBitcoins daily for a while, and that has not changed during November.”
Though the changes on the platform have impacted the overall trade volume, he is expecting the situation to become “more stable” in the coming weeks with the verification flow to influence positively as well.
Due to this new tier verification structure, the platform is currently working on catching up with a “sharp increase in support queries.”
LocalEthereum & LocalCrytpos Make an Entry
Currently, the exchange supports bitcoin and announced LocalCryptos to support more cryptocurrencies on Nov. 19.
Before LocalCrypto, a one-stop-shop for fiat-to-crypto ramps worldwide, LocalEthereum, which unlike its Bitcoin counterpart is a private non-custodial, and featured end-to-end encrypted messages is coming.
LocalEthereum and LocalCryptos serve more than 100,000 users worldwide, with roughly 1,000 online users in 70 countries, and ~200 completed trades on a normal day.