Just recently news.Bitcoin.com reported on traders who exchanged “significant” trade volume using the peer-to-peer platform, Localbitcoins, by receiving warnings to upload their identity before they could proceed trading. Now the Localbitcoins organization has updated its terms of service agreement which comes with a few new guidelines concerning ID verification and data retention.
Bonus... and a shout out to our friends at VPNGeeks for their Ultimate Beginners Guide to GDPR Compliance in 2019
Localbitcoins Updates its ToS, Highlighting ID Verification and the Organization’s Privacy Policy
Localbitcoins the peer-to-peer exchange founded in June 2012 in Helsinki, Finland has been a very popular trading platform for quite some time. For a while, users could trade in a fairly anonymous manner as it wasn’t required for traders to upload their identification. However a few years ago the organization added the ability for users to verify their state ID or license through a system called Jumio Netverify. A user could voluntarily upload their ID, adding more trust to the trading situation if the person is a real individual. Then this year traders who have been trading “significant” amounts of BTC volume reportedly were being asked to upload their ID to proceed to trade further using the platform.
Now the business has updated its terms of service (ToS), and explains much of the changes are due to EU regulation, specifically the General Data Protection Regulation (Regulation 2016/679). Cryptocurrency enthusiasts thought that it was odd that Localbitcoins suddenly announced changing its ToS this month, due to this specific regulation which is supposed to actually limit data harvesting, and allow citizens ownership over their identity rights online. Localbitcoins new ToS highlights a few things users should know about identification requirements.
Some Situations May Prompt ID Verification
Localbitcoins states the organization still does not enforce
