Bitstamp, a Luxembourg-based bitcoin exchange, has picked digital identity verification firm Onfido to clear the piled up customer signup request which the exchange has been lagging to register. The decision was taken to adhere to Know Your Customer (KYC) norms and government regulations of countries around the world.
Cryptocurrency trading is gaining momentum as more and more crypto enthusiasts plan to trade digital currencies. Onfido’s role will be to scale Bitstmaps onboarding effort, which lately has spurred as bitcoin price steadily grows. As bitcoin again hits $10,000, it is anticipated that the sign-up volume will only increase further. Currently, the exchange has about three million registered traders on its platform.
Onfido Verification is Live on Bitstamp
“Onfido’s powerful machine-learning technology has allowed us to automate our new customer identity verification process, and still maintain our high standards when it comes to KYC. We’re already seeing positive results when it comes to speeding up our verification process.”
As the demand for trading cryptocurrencies reached unparalleled levels, Bitstamp with many other exchanges had been in a bottleneck that kept customers waiting for verification. In December 2017, popular crypto exchanges like Bitfinex, Bittrex, Coinbase and Kraken faced the same issue. Most of the exchanges halted new registration temporarily until they could restructure their registration process. Meanwhile, US-based crypto exchange Bittrex has opened its doors for a corporate account or a select invitee. To apply for the new account, users have to fill an application form and submit the request to the exchange.
In December, Bitstamp CEO, Nejc Kodrič, revealed that the exchange is receiving over 100,000 new signup request on a daily basis. At the time, he tweeted, “Please understand that we currently have over 100,000 new accounts opened daily. It is challenging to cope with such surge. We are expanding our capacity to onboard clients faster, but this takes a bit of time.”
Regulations Toughens as Consumer Demand Surges
The London-based digital identification company, Onfido, employs machine learning technology that automates the validation of identity documents and matches it with facial biometrics. At present, the country serves over 1,500 customers globally which includes popular financial platform like Revolut and Square. Onfido’s platform also cross-references identity documents against international credit and watchlist databases.
Husayn Kassai, Onfido CEO and co-founder stated, “We are quickly becoming the go-to provider for KYC in this space, and are helping make it more secure. We now work with over 30 cryptocurrency companies, allowing them to scale customer onboarding smoothly, and be more vigilant as the digital currency industry faces more scrutiny and regulation.”
Japan has been a benchmark in adopting and regulating the crypto space. In Japan, KYC regulations have already been in place and applied to crypto exchanges. However, many other countries are following Japan’s path in forming a new regulatory framework for the crypto space.