| | 1 | {{Use dmy dates|date=November 2023}} |
| | 2 | {{Infobox company |
| | 3 | | name = LocalBitcoins |
| | 4 | | logo = LocalBitcoins_logo_and_wordmark.png |
| | 5 | | founded = {{start date|2012|6}}<ref name="Knibbs2012">{{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 }}</ref> |
| | 6 | | founder = Jeremias Kangas |
| | 7 | | hq_location_city = [[Helsinki]] |
| | 8 | | hq_location_country = Finland |
| | 9 | | defunct = {{End date|2023|2}} |
| | 10 | | fate = |
| | 11 | | area_served = Worldwide<ref name="livemint_">{{Cite web|url=https://www.livemint.com/Money/qAqErlD8q6yEnR9P3W3v9J/Making-a-fortune-from-arranging-private-bitcoin-transactions.html|title=Making a fortune from arranging private bitcoin transactions|first=Steve|last=Stecklow|date=September 29, 2017|website=mint|archive-url=https://web.archive.org/web/20170930163347/http://www.livemint.com/Money/qAqErlD8q6yEnR9P3W3v9J/Making-a-fortune-from-arranging-private-bitcoin-transactions.html|archive-date=2017-09-30|url-status=live}}</ref> |
| | 12 | | key_people = Sara Leppänen <small>(CEO)</small> <br /> Nikolaus Kangas <small>(former CEO)</small><br />Jeremias Kangas <small>(former CEO)</small> |
| | 13 | | num_employees = 100+ |
| | 14 | | website = {{URL|https://localbitcoins.com}} |
| | 15 | }} |
| | 16 | |
| | 17 | '''LocalBitcoins''' was a [[peer-to-peer]] [[cryptocurrency exchange|bitcoin exchange]] platform based in [[Helsinki]], [[Finland]].<ref name="bloomberg_20190711_btcpopularity">{{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 }}</ref><ref name="ft_top100europe">{{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}}</ref> |
| | 18 | |
| | 19 | Its service facilitated [[Over-the-counter (finance)|over-the-counter]] trading of local currency for bitcoins.<ref name="wired_20130328_btcstreets">{{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 (website)|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}}</ref> Users posted advertisements on the website, where they stated exchange rates and payment methods for buying or selling bitcoins.<ref name="bloomberg_20170224_unkillable">{{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 }}</ref> Other users replied to these advertisements and make the payment in their specified payment method. As of December 2020, LocalBitcoins had over 1,000,000 active traders with a trade volume |
| | 20 | of 612 million US dollars between October and December 2020.<ref name="cfi_20210204_1millionactive">{{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}}</ref> |
| | 21 | |
| | 22 | == History == |
| | 23 | 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 |
| | 24 | are an average of 29,566 successful trades per day.<ref name="cfi_20210204_1millionactive" /> |
| | 25 | |
| | 26 | In 2018, LocalBitcoins headed the list of best financially performing companies in [[Finland]] arranged by the local specialized publication [[Kauppalehti]].<ref name="kauppalehti_20181023_topcompaniesfinland">{{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}}</ref> |
| | 27 | |
| | 28 | In 2014, 2016, and 2018 people who used the site were arrested for money laundering and related crimes.<ref name="bi_20140209_targeted">{{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}}</ref><ref name="jgov_20170525_shreveport">{{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}}</ref><ref name="arst_20180711_300kprison">{{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}}</ref> |
| | 29 | |
| | 30 | In January 2019, hackers stole bitcoin worth $28,200 from users' LocalBitcoins accounts.<ref name="zdnet_20190127_lb-breach">{{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 }}</ref> 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]]. |
| | 31 | |
| | 32 | In November 2019, LocalBitcoins.com got registered as a Virtual Currency Provider by the [[Finnish Financial Supervisory Authority]].<ref>{{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}}</ref> |
| | 33 | |
| | 34 | On 9 February 2023, LocalBitcoins announced it will cease operations later in February.<ref>{{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 }}</ref> |
| | 35 | |
| | 36 | |
| | 37 | ==Services== |
| | 38 | The website offered a service to facilitate the locating of Bitcoin users, who can meet for person to person trading of bitcoin.<ref name="BOD">{{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}}</ref>{{rp|23}} The site is suggested for casual traders seeking more privacy.<ref name="BOD"/>{{rp|207}} The site uses an escrow system, and the transfer of bitcoin is made after funds are received in the sellers account.<ref name="BLP">{{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}}</ref><ref name="WileyGuide">{{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}}</ref>{{rp|221}} LocalBitcoins has a [[reputation system]] for users and an escrow and conflict resolution service. |
| | 39 | |
| | 40 | == References == |
| | 41 | {{reflist}} |
| | 42 | |
| | 43 | ==External links== |
| | 44 | * {{Official website}} |
| | 45 | {{Cryptocurrencies|state=expanded}} |
| | 46 | |
| | 47 | [[Category:Bitcoin companies]] |
| | 48 | [[Category:Financial services companies established in 2012]] |
| | 49 | [[Category:Financial services companies of Finland]] |
| | 50 | [[Category:Finnish companies established in 2012]] |
| | 51 | [[Category:Companies based in Helsinki]] |
projects / BK-2020-09.git / blame_incremental