LocalBitcoins
{{Short description|Bitcoin platform in Finland}}
{{Use dmy dates|date=November 2023}}
{{Infobox company
| name = LocalBitcoins
| logo = LocalBitcoins_logo_and_wordmark.png
| founded = {{start date|2012|6}}{{cite news|last=Knibbs |first=Kate |date=2015-02-05 |title=Meet the Street Dealers Who Peddle Bitcoin |url=https://gizmodo.com/the-street-dealers-who-peddle-bitcoin-1683847723 |work=Gizmodo |access-date=2016-12-30 |archive-url=https://web.archive.org/web/20161230081844/http://gizmodo.com/the-street-dealers-who-peddle-bitcoin-1683847723 |archive-date=2016-12-30 |url-status=dead }}
| founder = Jeremias Kangas
| hq_location_city = Helsinki
| hq_location_country = Finland
| defunct = {{End date|2023|2}}
| fate =
| key_people = Sara Leppänen (CEO)
Nikolaus Kangas (former CEO)
Jeremias Kangas (former CEO)
| num_employees = 100+
| website = {{URL|https://localbitcoins.com}}
}}
LocalBitcoins was a peer-to-peer bitcoin exchange platform based in Helsinki, Finland.{{cite news | url=https://www.bloomberg.com/news/articles/2019-07-11/bitcoin-s-reawakening-drives-diehards-deeper-into-the-shadows | title=Crypto Peer-to-Peer Exchanges Grow in Popularity as Regulatory Scrutiny Rises | newspaper=Bloomberg.com | date=11 July 2019 }}{{Cite news|url=https://www.ft.com/content/cf0c5fce-3112-11e8-b5bf-23cb17fd1498|title=The FT 1000: The complete list of Europe's fastest growing companies|first=Ian|last=Smith|newspaper=Financial Times|date=February 11, 2018|archive-url=https://web.archive.org/web/20190220012734/https://www.ft.com/content/cf0c5fce-3112-11e8-b5bf-23cb17fd1498|archive-date=2019-02-20|url-status=live}}
Its service facilitated over-the-counter trading of local currency for bitcoins.{{cite web|last=McMillan |first=Robert |url=https://www.wired.com/2013/07/buttonwood/ |title=Why the Only Real Way to Buy Bitcoins Is on the Streets |work=Wired|publisher=Condé Nast|date=2013-03-28 |access-date=2014-02-19 |archive-url=https://web.archive.org/web/20140416141419/http://www.wired.com/2013/07/buttonwood |archive-date=2014-04-16 |url-status=live}} Users posted advertisements on the website, where they stated exchange rates and payment methods for buying or selling bitcoins.{{cite news | url=https://www.bloomberg.com/opinion/articles/2017-02-24/even-china-can-t-kill-bitcoin | title=Even China Can't Kill Bitcoin | newspaper=Bloomberg.com | date=24 February 2017 }} Other users replied to these advertisements and make the payment in their specified payment method. In December 2020, LocalBitcoins had over 1,000,000 active traders with a trade volume
of 612 million US dollars between October and December 2020.{{Cite web|url=https://www.crowdfundinsider.com/2021/02/171915-bitcoin-adoption-nearly-1m-active-localbitcoins-users-in-q4-2020-while-p2p-competitor-paxful-reports-steady-btc-trading-growth/|title=Bitcoin Adoption: Nearly 1M Active LocalBitcoins Users in Q4 2020, while P2P Competitor Paxful Reports Steady BTC Trading Growth|date=February 4, 2021|website=Crowdfund Insider |archive-url=https://web.archive.org/web/20210204125859/https://www.crowdfundinsider.com/2021/02/171915-bitcoin-adoption-nearly-1m-active-localbitcoins-users-in-q4-2020-while-p2p-competitor-paxful-reports-steady-btc-trading-growth/ |archive-date=2021-02-04 |url-status=live}} LocalBitcoins shut down in February 2023.
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, and in 2020 there was an average of 29,566 successful trades per day.
In 2018, LocalBitcoins headed the list of best financially performing companies in Finland arranged by the local specialized publication Kauppalehti.{{Cite web|url=https://www.kauppalehti.fi/yritykset/menestyjat/parhaat|title=Kauppalehti Menestyjät | Yritykset | Kauppalehti|website=Tärkeimmät talousuutiset | Kauppalehti|archive-url=https://web.archive.org/web/20181023162135/https://www.kauppalehti.fi/yritykset/menestyjat/parhaat |archive-date=2018-10-23 |url-status=deviated}}
In 2014, 2016, and 2018 people who used the site were arrested for money laundering and related crimes.{{cite web|url=http://www.businessinsider.com/localbitcoinscom-targeted-by-feds-2014-2|title=LocalBitcoins.com Targeted - Another Major Bitcoin Exchange May Be Under Threat|date=2014-02-09|work=Business Insider|access-date=2014-02-19|archive-url=https://web.archive.org/web/20140214131319/http://www.businessinsider.com/localbitcoinscom-targeted-by-feds-2014-2|archive-date=2014-02-14|url-status=live}}{{Cite web|url=https://www.justice.gov/usao-wdla/pr/former-shreveport-chiropractor-son-sentenced-operating-illegal-bitcoin-exchange|title=Former Shreveport chiropractor, son sentenced for operating illegal bitcoin exchange business|date=2017-05-25|website=www.justice.gov|language=en|access-date=2019-05-31|archive-url=https://web.archive.org/web/20230409221749/https://www.justice.gov/usao-wdla/pr/former-shreveport-chiropractor-son-sentenced-operating-illegal-bitcoin-exchange|archive-date=2023-04-09|url-status=live}}{{Cite web|url=https://arstechnica.com/tech-policy/2018/07/woman-who-once-bought-bitcoins-for-300000-cash-in-paper-bags-sent-to-prison/|title=Woman who once bought bitcoins for $300,000 cash in paper bags sent to prison|last=Farivar|first=Cyrus|date=2018-07-11|website=Ars Technica|language=en-us|access-date=2019-04-07|archive-url=https://web.archive.org/web/20180711091234/https://arstechnica.com/tech-policy/2018/07/woman-who-once-bought-bitcoins-for-300000-cash-in-paper-bags-sent-to-prison/|archive-date=2018-07-11|url-status=live}}
In January 2019, attackers stole bitcoin worth $28,200 from users' LocalBitcoins accounts.{{cite news |last1=Cimpanu |first1=Catalin |title=LocalBitcoins blames security breach on forum 'third-party software' |url=https://www.zdnet.com/article/localbitcoins-blames-security-breach-on-forum-third-party-software/ |work=ZDNet |date=January 27, 2019 |archive-url=https://web.archive.org/web/20201026112004/https://www.zdnet.com/article/localbitcoins-blames-security-breach-on-forum-third-party-software/ |archive-date=2020-10-26 |url-status=live }} 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.
In November 2019, LocalBitcoins.com got registered as a Virtual Currency Provider by the Finnish Financial Supervisory Authority.{{Cite web|url=https://www.finanssivalvonta.fi/en/publications-and-press-releases/Press-release/2019/the-financial-supervisory-authority-granted-five-registrations-as-virtual-currency-provider--scope-of-supervision-is-the-prevention-of-money-laundering/|title=The Financial Supervisory Authority granted five registrations as virtual currency provider|website=finanssivalvonta.fi|access-date=2020-02-21|archive-date=2020-02-21|archive-url=https://web.archive.org/web/20200221163915/https://www.finanssivalvonta.fi/en/publications-and-press-releases/Press-release/2019/the-financial-supervisory-authority-granted-five-registrations-as-virtual-currency-provider--scope-of-supervision-is-the-prevention-of-money-laundering/|url-status=dead}}
On 9 February 2023, LocalBitcoins announced it would cease operations later in February.{{Cite web|url=https://localbitcoins.com/service_closure/|title=LocalBitcoins will discontinue its service|website=localbitcoins.com|access-date=2023-02-09 |archive-url=https://web.archive.org/web/20230209083741/https://localbitcoins.com/service_closure/ |archive-date=2023-02-09 |url-status=live }}
Services
The website offered a service to facilitate the locating of Bitcoin users, who could meet for person to person trading of bitcoin.{{cite book|last1=Guttmann|first1=Benjamin|title=The Bitcoin Bible|date=2013-11-25|publisher=Books on Demand|isbn=978-3732284320|url=https://books.google.com/books?id=WfUtAgAAQBAJ&q=localbitcoins&pg=PA23}}{{rp|23}} The site was suggested for casual traders seeking more privacy.{{rp|207}} The site used an escrow system, and the transfer of bitcoin was made after funds were received in the sellers account.{{cite book|last1=Patterson|first1=Sam|title=Bitcoin Beginner: A Step By Step Guide To Buying, Selling And Investing In Bitcoins|date=2013-12-04|publisher=Better Life Publishers|isbn=9781483521060|url=https://books.google.com/books?id=onJcDQAAQBAJ&q=localbitcoins&pg=PT35}}{{cite book|last1=Cofnas|first1=Abe|title=The Forex Trading Course: A Self-Study Guide to Becoming a Successful Currency Trader, 2nd Edition|date=2015-07-20|publisher=Wiley Trading|isbn=978-1118998656|url=https://books.google.com/books?id=FR_YCQAAQBAJ&q=localbitcoins&pg=PA221}}{{rp|221}} LocalBitcoins had a reputation system for users and an escrow and conflict resolution service.
References
{{reflist}}
External links
- {{Official website}}
{{Cryptocurrency exchanges}}
Category:Financial services companies established in 2012
Category:Financial services companies of Finland