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LocalBitcoins

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LocalBitcoins
FoundedJune 2012[1]
FounderJeremias Kangas
Headquarters
Helsinki
,
Finland
Area served
Worldwide[2]
Key people
Sebastian Sonntag (CEO)
Nicholas Kangas (former CEO)
Jeremias Kangas (former CEO)
Number of employees
100+
Websitelocalbitcoins.com

LocalBitcoins is a peer to peer bitcoin marketplace based in Helsinki, Finland.[3][4] Its service facilitates over-the-counter trading of local currency for bitcoins.[5] Users post advertisements on the website, where they state exchange rates and payment methods for buying or selling bitcoins.[6]

Other users reply to these advertisements and make the payment in their specified payment method. LocalBitcoins has a reputation and feedback mechanism for users and an escrow and conflict resolution service. As of December 2020, LocalBitcoins has over 1,000,000 active traders with a trade volume of 612 million US dollars between October and December 2020.[7]

History

LocalBitcoins was founded in June 2012 by Jeremias Kangas. He implemented an escrow system for the marketplace by the end of 2012. The website started generating revenue by the beginning of 2013, now as of 2020 there are an average of 29,566 successful trades per day.[8]

In 2018, LocalBitcoins headed the list of best financially performing companies in Finland arranged by the local specialized publication Kauppalehti.[9]

In 2014, 2016, and 2018 people who used the site were arrested for money laundering and related crimes.[10][11][12]

In January 2019, hackers stole bitcoin worth $28,200 from users' LocalBitcoins accounts.[13] LocalBitcoins was able to identify and solve the case immediately, announcing so to its users. On the same day, LocalBitcoins shared that LocalBitcoins accounts were safe to use and emphasized the importance of two-factor authentication.[14]

In June 2019, LocalBitcoins removed local cash ads from their website in line with detecting and preventing money laundering.[15] On September 2019, Sebastian Sonntag became the new CEO of Localbitcoins[16]

In November 2019, LocalBitcoins.com got registered as a Virtual Currency Provider by the Finnish Financial Supervisory Authority.[17]

Solution overview

The website offers a service to facilitate the locating of other Bitcoin users can meet others for person to person trading of bitcoin.[18]: 23  The site is suggested for casual traders seeking more privacy.[18]: 207  The site uses an escrow system, and the transfer of bitcoin is made after funds are received in the sellers account.[19][20]: 221 

References

  1. ^ Knibbs, Kate (2015-02-05). "Meet the Street Dealers Who Peddle Bitcoin". Gizmodo. Archived from the original on 2016-12-30. Retrieved 2016-12-30.
  2. ^ https://www.livemint.com/Money/qAqErlD8q6yEnR9P3W3v9J/Making-a-fortune-from-arranging-private-bitcoin-transactions.html
  3. ^ https://www.bloomberg.com/news/articles/2019-07-11/bitcoin-s-reawakening-drives-diehards-deeper-into-the-shadows
  4. ^ https://www.ft.com/content/cf0c5fce-3112-11e8-b5bf-23cb17fd1498
  5. ^ McMillan, Robert (2013-03-28). "Why the Only Real Way to Buy Bitcoins Is on the Streets | Wired Enterprise". Wired. Condé Nast. Retrieved 2014-02-19.
  6. ^ https://www.bloomberg.com/opinion/articles/2017-02-24/even-china-can-t-kill-bitcoin
  7. ^ https://www.crowdfundinsider.com/2021/02/171915-bitcoin-adoption-nearly-1m-activelocalbitcoins-users-in-q4-2020-while-p2p-competitor-paxful-reports-steady-btc-trading-growth/
  8. ^ https://www.crowdfundinsider.com/2021/02/171915-bitcoin-adoption-nearly-1m-activelocalbitcoins-users-in-q4-2020-while-p2p-competitor-paxful-reports-steady-btc-trading-growth/
  9. ^ https://www.kauppalehti.fi/yritykset/menestyjat/parhaat
  10. ^ "LocalBitcoins.com Targeted - Another Major Bitcoin Exchange May Be Under Threat". Business Insider. 2014-02-09. Retrieved 2014-02-19.
  11. ^ "Former Shreveport chiropractor, son sentenced for operating illegal bitcoin exchange business". www.justice.gov. 2017-05-25. Retrieved 2019-05-31.
  12. ^ Farivar, Cyrus (2018-07-11). "Woman who once bought bitcoins for $300,000 cash in paper bags sent to prison". Ars Technica. Retrieved 2019-04-07.
  13. ^ Cimpanu, Catalin (January 27, 2019). "LocalBitcoins blames security breach on forum 'third-party software'". ZDNet.
  14. ^ https://www.zdnet.com/article/localbitcoins-blames-security-breach-on-forum-third-party-software/
  15. ^ @LocalBitcoins (June 4, 2019). "Note on the removal of Local Cash Ads" (Tweet) – via Twitter.
  16. ^ "LocalBitcoins names Sebastian Sonntag as CEO". localbitcoins.com. Retrieved 2019-12-15.
  17. ^ "The Financial Supervisory Authority granted five registrations as virtual currency provider". finanssivalvonta.fi. Retrieved 2020-02-21.
  18. ^ a b Guttmann, Benjamin (2013-11-25). The Bitcoin Bible. Books on Demand. ISBN 978-3732284320.
  19. ^ Patterson, Sam (2013-12-04). Bitcoin Beginner: A Step By Step Guide To Buying, Selling And Investing In Bitcoins. Better Life Publishers. ISBN 9781483521060.
  20. ^ Cofnas, Abe (2015-07-20). The Forex Trading Course: A Self-Study Guide to Becoming a Successful Currency Trader, 2nd Edition. Wiley Trading. ISBN 978-1118998656.
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