On July 1, the Australian Government is introducing updated security rules regarding how money and digital assets (like cryptocurrency) move around. These rules are called The Travel Rule and Enhanced Customer Due Diligence. Localcoin is making small changes to ensure compliance with these new rules.
Don't worry—your funds are completely safe, and for the vast majority of people, this won't change your day-to-day experience. To help you understand what's happening behind the scenes, we've broken down these upcoming changes using a simple analogy.
The Metaphor: The Digital "Registered Post"
Imagine you want to mail a high-value package to a friend.
- The Travel Rule (The Label): In the early days of digital finance, sending a transfer was a bit like dropping an unmarked envelope into a public mailbox—no return address, no questions asked. Under the new Travel Rule, it’s now like using a Registered Post. When you send money or crypto, your verified information and the recipient's information legally "travel" attached to the digital package.
- Enhanced Customer Due Diligence (The Safety Hold): If a package arrives at our platform with the sender’s label ripped off, or if something looks unusual, we can’t just hand it over to you. We have to pause, pull it aside, and ask for a little more information to verify where it came from and ensure it's legitimate. This deeper safety check is what regulators call Enhanced Customer Due Diligence (ECDD).
Here is a quick look at the who, what, where, when, and why of this update:
| WHO does this affect? | Anyone using banks, money transfer services, or crypto platforms in Australia, as well as businesses facilitating those transfers. This includes Localcoin customers using our Crypto ATMs. |
| WHAT is changing? | Financial and crypto platforms are legally required to share identity data during transfers. If data is missing or a transfer looks risky, a stricter safety review (ECDD) is automatically triggered. |
| WHERE is this happening? | Across all of Australia, applying to both domestic transfers and transactions sent overseas. |
| WHEN does it start? | July 1st. |
| WHY are they doing it? | To lock out scammers, fraud syndicates, and cyber-criminals, making the financial ecosystem much safer for everyday Australians. |
What Does This Mean For You?
On July 1st, all Localcoin customers in Australia will be required to provide additional documentation to verify their identity or source of funds if not previously submitted.
Accepted Source of Fund Documents include:
- Bank Statements
- Pay Slips
- Sales Agreements (Property, land, car, etc.)
How do I submit the documents?
You will receive a link via SMS message that will take you to the Localcoin source of funds document upload page. From there, select and upload the documents.
I’ve submitted my documents, what’s next?
After submitting your documents, if they are validated successfully, you’ll receive confirmation your profile has been verified (image below). Otherwise, you will be prompted to resubmit a new document. Once your profile is verified, you can proceed using Localcoin services as you did before.
I Need Help, who do I contact?
You can contact our support team through the following channels:
Email: help@localcoinatm.com
Phone: +61 1800 953 282
Live Chat: connect through our Help Bot via our website
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