This is a new development

The problem with localbitcoins is that criminals are always exploring new ways to utilize it and created lots of complain from victims, when those complains reached police, they will turn to localbitcoins and give them pressure

A typical scam nowadays is to sell goods (which does not exist at all) online and direct the buyer to pay to localbitcoins' bitcoin seller account. And when the seller release the coins, the scammer just run away with coins, leaving the seller facing lots of complain from victims

So eventually those sellers on the platform have to comply with "know your customer" rule and collect ID document from buyers. But I think localbitcoins just do escrow service, thus not directly related to money transfer, should not be regulated

It's a pity that Finland is a country using euro, more affected by the financial regulation rules in euro zone