Leading Bitcoin exchange, Bitstamp, has chosen compliance software from GBGroup in a bid to improve the trading environment and add security to the Bitcoin industry. The rapidly developing peer to peer network has been growing from strength to strength as Bitcoin’s have become an alternative payment mechanism.
Bitstamp will use GBGroup’s ID3global solution which gives the exchange access to verify upto 3 billion citizens data, covering countries such as; the UK, Australia and China, as well as several other countries. The solution uses various ID Verification Solutions including; LiteIDV, URU and CitizenSafe.
Speaking about the new solution, Nejc Kodric CEO at Bitstamp said in a statement: “Selecting GBGroup has provided the reliable infrastructure we needed to help push this disruptive new entrant in the currency market to its full potential. We cannot operate in the market that we do without knowing who our customers are, so we feel this deal represents a great match – as one of the leading Bitcoin traders we felt it was only right that we recruit the market’s leading Identity Verification business to protect our customers, wherever they are in the world. Moving forward Bitstamp is keen to lead the way by implementing the best practices that will shape and ensure the long term future of our market.”
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The Bitcoin industry has come under scrutiny by regulators and authorities due to its lack of systematic regulations. Bitstamp’s new initiative will help improve the image of the Bitcoin marketplace and boost confidence among users.
The new technology will allow the world’s largest Bitcoin exchange to verify hundreds of new customers per day. Recent industry estimates place the amount of Bitcoins in circulation at around 11 million, with a collective market value approaching $1.4 billion at current rates. One of the key tools in the ID3global solution is the passport verification system, it verifies 100% of Machine Readable Zone (MRZ) compliant passports issued by more than 180 countries to confirm the accuracy of the document.
“As the Bitcoin market, which is just one part of the wider crypto currency industry continues to grow it is increasingly important to demonstrate that the same best practices are observed as those used in traditional financial markets. Customers need to be confident that trading in Bitcoins is safe or they will go elsewhere. GBGroup has vast experience in Identity Verification and is excited to help innovative new markets to establish themselves and provide a safe business environment for their customers. We see this as just the first step – as more traders adopt advanced Identity Verification they will be laying the foundations necessary to keep Bitcoin alive, possibly even propelling it into a position where it can claim to be one of the world’s currencies of choice,” explained John Lord, Managing Director at GBGroup in the official press briefing.