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Felicia Tan
June 27 12:24

LocalBitcoins says Bitcoin darknet transactions have been cut by 70%

P2P platform LocalBitcoins reported a 70% drop in the number of transactions related to the darknet markets since September last year, writes Cointelegraph. The reason is tougher AML/KYC procedures.
Relative reduction is not significant due to a sharp decrease in the number of bitcoins circulating on the peering platform. According to CoinDance, weekly trading volumes of BTC spiked from almost 14 thousand coins in January 2019 to about 4 thousand in January 2020. During the period from September 2019 to May 2020, the dynamics was not so dramatic - the figure fell from 5 thousand to 4 thousand BTC.
According to Yukka Bloomberg, Marketing Director at LocalBitcoins, a breakthrough has been observed in the last 2-3 months, which is typical for all regions. Thus, the number of new customer registrations has more than halved since the beginning of 2020 - from 4 thousand to more than 6 thousand.
Despite the tightening of AML/KYC procedures in September 2019, Localbitcoins is still seen by many people as the " money laundry" of illegally obtained income through cryptocurrencies. CipherTrace, a cryptocompany, estimates that one in eight Bitcoins on this site had criminal origins.
Similar conclusions were reached by IntSight, a cybersecurity startup. The company's specialists called P2P platforms, such as LocalBitcoins, the main area of money laundering due to lack of regulation.
In early June, the volume of transactions with bitcoin on P2P-platform Paxful at the end of last week in US dollar terms for the first time turned out to be higher than the competitor Localbitcoins - US$42.8 million vs. US$41.7 million.