BitPay — a Cryptocurrency payment processor — has decided to introduce new identity verification mechanisms for payouts, refunds, and payments that are highly valued.
However, person-to-person payments using both the BitPay and Copay apps will not be covered by the new measures as per an Aug 1 announcement that the United States-based firm released.
New verification process
The new BitPay Dashboard will encompass a new ID verification flow. Users will access transaction histories and various payment features as the dashboard functions as a personalized home page.
Now that BitPay ID is launched, users will have to input their photo ID as well as passport and Social Security number to complete the required one-time verification process.
A high-value payment to a BitPay merchant worth $3,000 or more is where the requirement is applicable. The requirement also impacts those who get a BitPay prepaid product, receive BitPay payouts, or request a refund of $1,000.
In the announcement, the following was highlighted:
“This process helps us improve our identity verification efforts and reduce payment risk for BitPay’s merchants. It’s also a requirement for us to be able to offer verified users future services like Bitcoin payouts, or faster onboarding for people who want to get BitPay prepaid products.”
BitPay has informed the users that the ID requirements and thresholds for payments started being implemented on Aug 5.
Challenge of data storage
Open-source BTCPay Server’s developer – who wanted to make to make BitPay and therefore, came up with this server — expressed in tweeter that he was “shocked! SHOCKED!” at the new measures’ introduction and one commentator later responded:
“Imagine being Bitpay. Your investors deserted you, bitcoiners despise you, now bcasher as well while the regulators bully them everyday. I am almost feeling sad for them … Almost.”
The 2015 firm’s hack in which 5,000 Bitcoin (BTC) valued more than $1.8 million was lost still lingers in the mind of many people.
At the beginning of this month, Know Your Customer (KYC) data — involving 10,000+ personal photos of Binance — was allegedly stolen after the crypto exchange’s possible hack.