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Bitpay, a cryptocurrency payment processor was founded in 2011, with the potential to revolutionize the financial industry, making payments faster and secured with fewer charges on a global scale.
Presently, over 10k merchants accept Bitcoin using Bitpay, and with this positive track record going bright for the exchange, it is of the essence to improve its security architecture using matched client data to prevent a hack or major theft on its platform causing disruption and reducing its credibility.
Transaction threshold of $3k on Bitpay
The recent KYC requirements on Bitpay require the client to submit a photo identity and social security details for transactions over $3k for Bitcoin, as this value is seen as a high payment transaction.
This new identity measure was recently announced by the North American company on August 1, although it specified that such policy targets outgoing transactions on its platform, and exempting internal transaction of its platform using Bitpay and Copay apps.
The KYC required verification data Items
Such important required data for the new identity verification process is part of a new Bitpay dashboard integrated recently to its platform and functioning as a personalized homepage where users have access to transaction histories and several payment features.
On the platform, users will pass through the process of verification by inputting the required information such as social security details or passport number and their photo identity.
This internal verification process requires such data whenever a user executes a deposit above the $3k threshold on the Bitpays platform or withdraw $1k or more and also to receive Bitpay payouts or get a Bitpay prepaid product. The announcement states that:
“These procedures support out client identity measures and minimize transaction risks for Bitpay’s merchants. It also enables us to perform future services to identified users such as Bitcoin payouts, or quick enrolment for intending clients who may request Bitpay prepaid products.”
This procedure applies to such transactions as from August 5.
Although users with such transactions above the $3k threshold gave negative reviews with criticism regarding privacy concerns which is generally accepted as a norm in the crypto sphere as a result of personal data storage on centralized troves.
A lot of users may not forget in a hurry the 2015 hack incidence with losses of about 5000 Bitcoin (BTC) with a fiat value of about $1.8 million at the time of the hack incidence. While also considering the recent infamous hack on Binance exchange earlier this month.