LocalBitcoins, an industry leader in Peer-To-Peer Bitcoin markets recently announced its financial results from 2019. Aside from revenue growth, the company was able to grow its user base after integrating know your customer ( KYC ) and anti-money laundering ( AML ) protocols. Founded in 2012, LocalBitcoins promotes financial inclusion by letting people buy, store, and transfer bitcoin in an efficient manner through human to human interaction.
LocalBitcoins, a world leader in person-to-person Bitcoin trading, recently announced its financial results from 2019. In terms of revenue, LocalBitcoins recorded €26.2 million in 2019, which was +10% higher year over year. Operating income fell slightly ( -6% ), while overall headcount surged +65%. In addition, the company experienced the following metrics:
- 1.46 million new customers transacting on LocalBitcoins platform
- €2.48 billion in trades processed on LocalBitcoins
- 15.6 million trades executed
- Number of active traders approached 913,000
LocalBitcoins CEO, Sebastian Sonntag stated that:
“2019 was an invaluable learning experience for us, as we implemented anti-money laundering and know-your-customer (KYC) regulations. As expected, undesired activity was driven away from the platform and the implementation of KYC itself was a challenging process. Despite these, we were able to deliver growth and excellent earnings.”
Continued Growth Despite Tighter Policies
Many people value crypto because of its core features around financial privacy and decentralization. As regulators continue to crack down on digital asset companies, companies like LocalBitcoins have taken an initiative by implementing know-your-customer ( KYC ) and anti-money laundering ( AML ) protocols to comply with applicable legal requirements. Of the 1.46 million in new LocalBitcoin customers during 2019, a large majority of them value a platform that is operating in a compliant and safe manner. Sebastian Sonntag talks about KYC / AML, and how it has helped their platform evolve. By implementing these procedures, the CEO stated that illicit activities have been reduced, which has ultimately added more trust and security on their platform. The company has placed a lot of emphasis on customer satisfaction as it continues to enter new horizons. Most recently, LocalBitcoins achieved a 4.8/5.0 on TrustPilot from 25,000+ customers.
While focusing on security, safety, and satisfaction in 2019, the positive momentum has rolled into 2020. So far this year, the company is experiencing daily new customer sign ups surging +50% since the beginning of the year. With LocalBitcoins beefing up security and eliminating illicit activity on its platform, the company continues to experience healthy demand as we enter the 2nd half of 2020. It’s worth noting that LocalBitcoins gives users the ability to deal directly with other users. With this being said, customers value security to ensure they are transacting money with the right people. Furthermore, this can explain the growing user base in a more secure environment.
More On LocalBitcoins
As referenced above, LocalBitcoins is a global leader relating to person-to-person bitcoin trading. On the company’s platform, it’s completely different than going to a traditional exchange. The LocalBitcoins platform operates through human to human interaction, meaning users trade directly with another person. Compared to a traditional crypto exchange, the experience on LocalBitcoins is much quicker and customizable. Users from different geographic locations come together and can exchange their local currency to Bitcoin. Escrow services provided by LocalBitcoins protect both buyers and sellers during a given transaction. In a world where 1.7 + billion people are “unbanked,” LocalBitcoins mission is to connect anybody to the internet economy, and fuel prosperity in developing countries.