Thursday, November 7, 2019

LBC ID - The unofficial guide...

So… you have had since the March 25th 2019 to sort out your sh*t ….. but you waited till now….

Here is the best guide I could come up with regrading ID verification on Localbitcoins. You will see this response cut n paste to the numerous requests (apologies in advance for the stalwarts here)

First thing first.

Do not blame support, do not blame Localbitcoins, Do not blame any individual (me included) the entity to blame for the ID and Regulation that is now mandatory is the European Union who (along with all member states) require that AML (Anti Money Laudering) and KYC (Know Your Customer) is enforced. LBC reside in Finland so have to follow Finnish AND EU Law – or they close. (There is no grey area here)

Ref – Blog Post “AML regulation and new features update

On Wednesday 13th March 2019, the Finnish Parliament has voted and approved a proposal for a new Act on Virtual Currency Service Providers and an amendment to the Act on Detecting and Preventing Money Laundering and Terrorist Financing ("AML law") that will bring virtual currency services (i.e. custodian wallet providers and exchanges) like LocalBitcoins under the AML law supervised by the Financial Supervisory Authority of Finland. The Virtual Currency Service Providers Act will come into full effect in the beginning of November 2019 creating a legal status for crypto assets, which should improve significantly Bitcoin’s standing as a viable and legit financial network.

Ref - https://ec.europa.eu/info/policies/justice-and-fundamental-rights/criminal-justice/anti-money-laundering-and-counter-terrorist-financing_en

Ref - http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32015L0849

So everyone was told in March 2019 this was coming into effect. In order for this to be achieved LBC have on boarded a known third party to carry out ID verification for them.

From LBC blog entry - “ https://localbitcoins.com/blog/tier-verification-deadline-extended/

And the company used is https://onfido.com/

So what does this mean …

LBC do not have the responsibility of checking and storing YOUR private credentials, they will get a response from Onfido regrading the validity of both your documentation and “Risk” you pose, this risk will then be combined with the data LBC hold on you which may (MAY and I did not say DOES) include previous bitcoin addresses used … people and accounts you have dealt with, information entered into trade chats, previous disputes AND third party validators .. that will “score” your risk - this is a standard operating procedure for any company in the EU that even has a hint of touching anything to do with FIAT ( Cash, mullah, dough, shekels, whatever you call real money ) all of which you must agree to … as per the privacy policy ( https://localbitcoins.com/privacy_policy/ ) and Terms of Service (TOS) ( https://localbitcoins.com/terms_of_service/ ) which by the way you have already agreed to in order to use LBC. Also bear in mind that blockchain analytics's and tracing is required for exchanges like LBC / Paxful / etc ( In order to comply with the EU directive ) and this comes from companies such as https://www.chainalysis.com/ and https://www.elliptic.co/ and unless you understand “Taint” or exploring bitcoin SHA256 wallets I will not bore you further…. In fact DO NOT get me started on taint …..

Lovely story TheBitcoinKing, but lets get on to how to help …

First off …

Personal and Company verification are different.

Personal.

Take note of the limits and criteria required depending on your trade volume available - https://localbitcoins.com/blog/id-verification-update/

Complete the tiers ( https://localbitcoins.com/settings/verification/ ) as far as you can

DO NOT USE iOS or Safari .. these seem to break the “Liveness test” and will give spurious errors

Make sure your ID is listed under https://onfido.com/supported-documents/

Make sure (When you take any pictures of your ID) they are high resolution and without glare and fit the frame, do not cut corners, do not use low resolution.

If you hit problems try again, using different ID if possible.

All else fails raise ONE 1 UNO 0 +1 the number below 2 support ticket.

You then go into the Q

Await a response. Updating, raising a new ticket, adding to the existing ticket simple resets your position to the back of the Q. Recently a test was done and it was worked out that LBC receive a new support ticket every minute of every day …. ( 60 x 24 = 1440 daily ) Now if only 10% of those are disputes … that require checking documents, responding etc … let say 30 mins …. you can quickly see the explosion of tickets can easily overwhelm support .. new people require training, vetting and checking thoroughly ( you do want vetted people looking after you hard earnt coins? )

LBC do not operate a live chat, telephone, email, twitter, reddit, IRC, telegram response or chat facility to support tickets. They have 1 Q and concentrate on that – opening other channels would create 2 Q’s more work and a slower response time. No one can “speed up” or otherwise nudge along your inquiry …

Deal with support in a prompt, timely and courteous manner. They are jusy the same as me and you and you pee them off .. well it is up to them how long you wait. And last but not least .. LBC is a privately owned company and they get to decide who they deal with. Pee off LBC and you will be banned and it is YOU banned not the account. No likey? Well you know where the door is … trust me the volume will NOT take a hit and we will not miss you.

And finally .. when the price goes up and you have hodled your precious you will be glad that the regulation, and LEGISLATION of bitcoin was enforced … however painful times are now.

( PS – UK Trader? - Jan 2019 you owe the FCA £5000 - https://www.fca.org.uk/firms/financial-crime/cryptoassets-aml-ctf-regime )

I thank you … + Peace + Love McV



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