The BitPay cryptocurrency processor introduces new identity verification measures for certain payments, repayments and large sums of money.
In particular, according to an announcement from a US company dated Aug. 1, the new measures will not apply to person-to-person payments via BitPay and Copay applications.
Photo ID, social security number
BitPay introduces its new identity verification feature as part of a new BitPay dashboard that acts as a custom homepage, providing access to users' transaction histories and various options of payment.
With the introduction of BitPay ID, users must undergo a one-time verification process. This requires data such as social security or passport number and a photo ID.
This requirement applies if a user wishes to make a payment of $ 3,000 or more to a BitPay reseller, request a refund of $ 1,000 or more, or receive BitPay payments or a BitPay prepaid product. The announcement says:
"This process helps us improve our identity verification efforts and reduce the risk of payment for BitPay merchants, which is also a prerequisite for providing future users with verified services such as payouts. Bitcoin or faster registrations for buyers of prepaid products BitPay want to offer. "
According to BitPay, payment limits and identity requirements will apply as of August 5th.
Centralized storage of data
The open source server developer BTCPay – launched as an alternative to BitPay and promising to make the service obsolete – tweeted that he was "shocked! Shocked!" when the new measure was introduced. In a comment, he said:
"Imagine that you were in Bitpay's place, your investors ran away, Bitcoiner despises you, now Bcasher, and during that time, you are being harassed by the regulators every day, I'm almost sorry … Almost.
Many still remember the hacking attack against the company in 2015, which had resulted in the loss of 5,000 Bitcoins (BTC) worth more than $ 1.8 million to the company. time.
Earlier this month, it was reported a hacking attack that allegedly stole much of Binance's cryptographic exchange identity verification data (more than 10,000 photos).