LocalBitcoins claims that darknet-related transactions on the platforum dropped 70% after it adopted AML and KYC regulations in September 2019.
LocalBitcoins, a major peer-to-peer (P2P) cryptocurrency exchange, has purportedly managed to significantly cut the amount of criminal funds on its platform in 2020.
The P2P platform has seen a decline of over 70% in transactions from darknet markets between September 2019 and May 2020, LocalBitcoins claims.
Jukka Blomberg, chief marketing officer at LocalBitcoins, told Cointelegraph that the drop comes in response to Anti-Money Laundering and Know Your Customer regulations adopted by the platform in September 2019.
The calculations are based on blockchain analysis by major crypto analytics firm Elliptic as well as LocalBitcoins’ own “clustering tools,” the firm said.
The drop is still notable despite Bitcoin trading collapse in 2019
A 70% drop in darknet-associated transactions might appear insignificant as LocalBitcoins experienced a massive decline in the amount of traded Bitcoin (BTC) in 2019.