PR: Coinsbit Launches Reliable and Safe Trading Platform

Coinsbit Launches Reliable and Safe Trading Platform

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

The blockchain technology has recently gained a great popularity and there are unlikely people who haven’t heard about Bitcoin and cryptocurrencies. The more coins enter the market, the more trading opportunities should be provided. In this case, crypto exchanges come into play. CoinMarketCap has over 200 trading platforms in its rating list. In fact, there are over 500 exchanges to choose from. Coinsbit has looked at the existing trading platforms and marked out key features that reliable and safe crypto exchange should have.

Key features of a perfect exchange

The rules for any exchange in the market are simple: registered legal entity, high level of security for transactions and users’ personal data, customer support, low transactions fees, high speed of transactions and more.

Coinsbit exchange provides traders with a wide range of opportunities that makes the platform legit, reliable, and secured:

Single Page Application
The exchange website doesn’t require much time to load and don’t overload the server.

CoinsCodes
Platform’s users can perform transactions between each other without the transaction fee;
High performance of the trading server

Transactions are fast and do not require much time to be confirmed. The exchange process up to 10.000 trading operations per second.

Security
The platform complies with the OWASP Top 10 standard. All financial assets of the traders are stored on cold wallets.

Client support
Coinsbit team provided a 24/7 support in English, Chinese, Japanese, Indonesian, Spanish, German, Russian languages;

Simple KYC
Fast user’s verification process;

Legitimacy
The exchange has a license to make trading operations in the EU.

Road for the future development
Exchanges should constantly evolve in accordance with the market requirements. Security, functionality, speed – everything should be developed with time in order to give users even more opportunities for trading crypto. By the end of 2018, Coinsbit is planning to introduce a margin trading with a 1:2, 1:3 leverage, cryptoloans in USD and USDT on the security of the cryptocurrency directly on the exchange, cryptofunding to make earnings on deposits in cryptocurrencies in the financing of margin trades, and hybridity in order to transfer part of trading pairs on a decentralized mechanism to increase the security of traders financial assets. One of the main goals of the team is to get a chance to be listed on CoinMarketCap.

More information about Coinsbit is available on the official website.

Press Contact Email Address
info@coinsbit.io

Supporting Link
https://coinsbit.io/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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The Daily: Coinbase Explores Crypto ETF, Changelly Verifies Monero Traders

The Daily: Coinbase Explores Crypto ETF, Changelly Verifies Monero Traders

US exchange Coinbase is reportedly exploring possibilities to create a cryptocurrency ETF and we’ve covered the details in The Daily. Also, Bittrex announces fiat pairs for cardano and zcash, Changelly admits requesting KYC documents from clients trading privacy coins like XMR, and Monero developers find another bug.

Also read: EU Urged for Common Crypto Rules, EEU Ready for Common Crypto

Coinbase Looking to Create Crypto ETF

Cryptocurrency exchange Coinbase, a leading US trading platform, has been exploring the development of a crypto-related exchange traded product. The San Francisco-headquartered company has held talks with representatives of the assets manager Blackrock, Business Insider reported quoting knowledgeable sources. The Wall Street giant has extensive expertise in launching similar products and has set up a blockchain working group, despite previous statements it’s not interested in crypto.

Earlier this year, Coinbase launched an index fund of cryptocurrencies aimed at accredited investors. An exchange traded fund (ETF) tied to cryptocurrency, which is likely to track multiple digital coins, would be targeted at and could facilitate the entrance of more mainstream, retail investors into the crypto market. If the company’s plans are confirmed, the California-based exchange will join a number of businesses from the space trying to launch crypto ETFs. The list already includes Gemini, Bitwise and Vaneck.

Regulators have so far rejected a number of proposals. Last month, the U.S. Securities and Exchange Commission (SEC) issued three decisions denying nine Bitcoin ETFs. A day after rejecting the proposed rule changes, however, the Commission initiated a review of all related decisions noting that the rejection orders from August 22 are stayed, as news.Bitcoin.com previously reported.

Bittrex Announces Fiat Pairs for Cardano and Zcash

The Daily: Coinbase Explores Crypto ETF, Changelly Verifies Monero TradersAnother US-based exchange, Bittrex, has recently launched fiat trading pairs with two altcoins, cardano (ADA) and zcash (ZEC). Eligible Bittrex accounts, created before September 4, are enabled for trading, the platform announced on Twitter this week. New users will have to submit a request to add USD trading to their accounts after passing KYC procedures. “Cardano (ADA) and zcash (ZEC) have been added to USD (fiat) markets,” according to the post conveying the information about the launch. The crypto trading platform is compliant with the requirements for carrying out fiat transactions since March.

Changelly Confirms KYC for XMR Traders

The Daily: Coinbase Explores Crypto ETF, Changelly Verifies Monero TradersA number of Monero (XMR) traders have recently taken to social media and crypto forums to complain that crypto exchange Changelly freezes digital assets requesting KYC (know your customer) verification. According to this tweet, for example, the platform asks for KYC documents after users have already sent the funds and refuses to refund them if they “are not up to par.” Clients trading privacy coins have expressed disappointment with the company’s policies claiming they’ve been effectively robbed after being automatically classified as high-risk users for trying to buy monero via Changelly.

The Prague-based exchange is considered one of the main alternatives to Shapeshift, a leading crypto-to-crypto trading platform which recently announced KYC requirements for its customers. A spokesperson for Changelly has admitted the service can withhold suspicious transactions and hold clients’ funds until they provide the requested information. Quoted by The Next Web, the representative explained:

To all Monero community, our risk management system doesn’t mark all transactions out of the blue… Monero is the crypto that hides sender and recipient thus making transactions untraceable. This is a reason why big amounts of other currency got to be checked before converted to XMR.

The spokesperson also noted that “We have no mistrust of and prejudice towards users trading XMR. The matter relates to a Know-Your-Customer procedure that we had to implement due to the increased number of money laundering cases via our service.” All funds are released and their owners are white-listed once cleared by Changelly’s security department. However, the exchange has admitted that the cryptocurrency is kept for an undisclosed period of time when a customer refuses to provide the required data.

New Monero Wallet Bug Discovered

The Daily: Coinbase Explores Crypto ETF, Changelly Verifies Monero TradersDevelopers of the privacy-oriented altcoin monero have discovered a vulnerability which exposes its wallet software’s accounting functions to cyber-attacks. According to a report released on September 5, the bug is related to the system of encoding transactions with public keys. The flaw in the wallet software allows hackers to access the user’s account, including transaction data. Currently, the extent of the possible damages is unknown and there is no information as to whether the programmers have managed to fix the problem. Other bugs in the Monero network were discovered earlier last month.

What are your thoughts on today’s news tidbits? Tell us in the comments section below.


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Four Alternatives to Shapeshift

Four Alternatives to Shapeshift

The news that Shapeshift is to move to a full custodial model, requiring KYC for anyone who wishes to swap cryptos, has sparked a wave of protests. Many users have vowed to take their business elsewhere. For cryptocurrency holders seeking a non-custodial exchange, there are several Shapeshift alternatives to choose from, with varying degrees of privacy.

Also read: Shapeshift Moves to Membership Model Requiring User Information

Shapeshifting Into a Custodial Exchange

Swapping cryptocurrencies should not require KYC any more than swapping a dollar bill for quarters. Unfortunately, not everyone sees it that way. In transforming into a custodial exchange, Shapeshift has lost its defining feature that was so pivotal in its success. The vast majority of users didn’t choose Shapeshift for nefarious purposes: they chose it because it was convenient. Having to send money to a cryptocurrency exchange, wait for funds to clear, set a market buy order, cash out, and then complete the withdrawal process simply to jump between cryptocurrencies is a chore. Shapeshift promised to do the same job in minutes, with no questions asked.

Four Alternatives to Shapeshift
On crypto Twitter, some people poked fun at Shapeshift’s rebrand

Reading between the lines, it appears that Shapeshift’s hand was forced by US lawmakers, likely with the threat of subpoenas and prosecution should it fail to change its business model. That being the case, it should be noted that any other US-based Shapeshift competitor is liable to meet a similar fate when it’s built up enough business to attract the attention of US prosecutors. For now, at least, the following services provide an alternative means of switching between cryptocurrencies such as BCH, BTC, and ETH.

Four Alternatives to Shapeshift
While Shapeshift was mocked for its rebrand, its defenders opined that the company had little choice

Changelly

As Shapeshift’s closest competitor, Changelly now has the chance to establish itself as the market leader for cryptocurrency changers. It offers dozens of cryptos including bitcoin cash, ripple, doge, and neo. An email address is required to use the service, but for those who desire their privacy, encrypted email providers like Tutanota are always an option. Changelly is not without its controversies however, with users complaining, in the last 24 hours, that the exchange can hold monero and force KYC before releasing funds. The Prague-based service should therefore be used with caution by anyone wishing to obtain privacy coins or to swap large quantities of cryptocurrency.

Flyp.me

Flyp.me has wasted no time in capitalizing on Shapeshift’s demise – or rebrand, rather, since Erik Voorhees’ company isn’t going away: it’s simply transforming into a service that its users didn’t ask or wish for. Flyp.me offers 26 cryptocurrencies including BTC (but no BCH), dash, and LTC, as well as a handful of extremely obscure altcoins. Its daily volume averages around 4 BTC, but has been on the rise in the last 24 hours since news of Shapeshift’s pivot broke. Flyp.me requires no registration – not even an email address. Nor does it use web trackers or third-party analytics.

Four Alternatives to Shapeshift
Flyp.me’s daily volume

Changenow

Changenow resembles Changelly, but seems to ask less questions, and has been operating smoothly since late last year. A wide range of popular cryptocurrencies, including bitcoin cash and monero, is covered, as well as a handful of less popular ones such as pepecoin. Generally speaking, there is no need to register to use the platform or to supply an email address. However there are some exceptions: Changenow “uses an automated risk management system to check all transactions. Each case will be considered individually. According to European AML directives, KYC regulations and platform requirements, we will ask you to provide you a scan of your ID document valid in your country and additional information of the funds origin.”

Four Alternatives to Shapeshift

Coinswitch

With over 300 cryptocurrencies covered, Coinswitch boasts an enviable array of digital assets. However, the service is built upon existing platforms including Shapeshift and Hitbtc, and seems to draw most of its trades from Changelly. While its range of altcoins can’t be faulted, Coinswitch would benefit from providing greater clarity on the information it requires from its users.

Four Alternatives to Shapeshift
The outspoken Riccardo Spagni took a typically antagonistic stance to Shapeshift’s decision

With Shapeshift no longer a viable option, there is a gap in the market for a more privacy-oriented alternative that is headquartered outside the subpoena-happy US. Flyp.me appears the best of the bunch for respecting user privacy, but is let down by its limited selection of coins. Hopefully it will expand its service or a new competitor will emerge that will facilitate the entirely lawful desire for an individual to swap one cryptocurrency for another.

What’s your favorite cryptocurrency changer and why? Let us know in the comments section below.


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Shapeshift Moves to Membership Model Requiring User Information

Shapeshift Moves to Membership Model Requiring User Information

Non-custodial crypto trading platform Shapeshift has introduced a membership program which will soon be mandatory. CEO Erik Voorhees explains that his exchange will have to begin collecting basic personal information of its users, and there will be five membership levels.

Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals

Shapeshift Membership Mandatory Soon

Shapeshift’s founder and CEO, Erik Voorhees, announced on Tuesday the launch of Shapeshift Membership.

Shapeshift Moves to Membership Model Requiring User Information“Shapeshift Membership is a loyalty program,” he described, adding that the benefits depend on the membership level which “may include higher trading limits, rewards on trading volume, better pricing, private market and trade data, and early access to new coins, products and services.” The CEO elaborated:

Today, membership is optional, but it will become mandatory soon…Membership requires basic personal information to be collected.

Shapeshift Moves to Membership Model Requiring User InformationOn its website, Shapeshift emphasizes that without user personal information, it “would not be able to offer higher order limits and would not be able to serve as many jurisdictions.”

The change will also affect integrated wallet services. Replying to a Twitter user’s question, “If Shapeshift membership will soon become mandatory, how does this affect in-wallet exchanges” such as Jaxx and Exodus? Shapeshift explained:

If you are using a wallet that integrates with Shapeshift, you will need to authenticate once through the wallet to enjoy the benefits of your membership and to then use the http://shapeshift.io service.

Users Express Disapproval

Shapeshift Moves to Membership Model Requiring User InformationSoon after Voorhees’ announcement, many industry participants stormed Twitter to comment on the change. Among them was Bitcoin Core developer Peter Todd. He quickly predicted, “Shapeshift bites the dust.”

Another Twitter user said he used the exchange because of the “Lack of AML/KYC [anti-money laundering/know your customer].” However, with Shapeshift “getting AML/KYC bullshit,” he declared, “Guess there’s no reason to use Shapeshift anymore. The only reason to gather data is to whore it to other vendors…and potentially lose it to hackers.”

A third Twitter user commented, “thanks for all you’ve done @Shapeshift_io, but I’ll [be] using another service from now on. You have destroyed your primary use-case.”

Why Shift to Membership Model

Voorhees detailed three driving forces for his platform’s shift from being “the exchange without accounts” to an account-based model.

Shapeshift Moves to Membership Model Requiring User Information
Erik Voorhees.

Firstly, he claims that many users have requested account-related features such as transaction history, whitelisted addresses, and email notification.

Secondly, “our increasing interest in the broad phenomenon of tokenization – the ability to ‘financialize’ and bring liquidity to various aspects of business/customer relationships,” he wrote.

Finally, Voorhees emphasized the “need to be prudent and thoughtful in our approach as we navigate the regulatory environment,” noting that “the practice of requiring customers to hand over personal private information is one we’ve struggled with since inception.”

Five Levels of Membership and FOX Tokens

Shapeshift Moves to Membership Model Requiring User InformationVoorhees described five levels of membership. “Level 1 is available now, and is free and open to everyone,” he confirmed. The transaction limit for this level is $10,000 with a $50,000 monthly cap on volume.

“Levels 2-5 will be available later, and enable benefits on higher amounts of volume,” Voorhees added. These levels “are optional and require FOX tokens,” standard Ethereum-based tokens “which will have a number of features and functions when they become available,” Shapeshift’s website clarifies.

The exchange elaborated:

Membership levels 2-5 require a user to hold various amounts of this token, and FOX is additionally used as a reward for members in various ways. Membership levels 2-5 are not yet available, but will be in the future.

What do you think of Shapeshift moving to a membership model? Would you still use Shapeshift? Let us know in the comments section below.


Images courtesy of Shutterstock and Shapeshift.


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Crypto Exchange Okex Introduces Stricter KYC Rules

Crypto Exchange Okex Introduces Stricter KYC Rules

Hong Kong-based cryptocurrency exchange Okex is enforcing tightened identity verification procedures. Daily withdrawal limits will soon depend on the KYC level passed by its users. The changes will apply to customers of Okex’s partnering platforms as well.

Also read: Report: North Korea to Hold a Crypto Conference

Withdrawal Limits to Depend On the Level of Verification

While authorities in China are escalating the recently initiated crackdown on the crypto sector, Chinese-run cryptocurrency exchange Okex has announced stricter KYC (know your customer) rules on its platform. Users who wish to withdraw funds will have to pass mandatory verification. According to a notification published on its website, Okex intends to enforce the requirements on August 28.

Crypto Exchange Okex Introduces Stricter KYC RulesNew withdrawal limits will be introduced as well and they will depend on the level of identification of each customer. Users will have to complete at least KYC verification level 1 in order to withdraw digital assets from Okex.

Providing passport data will be enough for a daily limit of 2 BTC. KYC levels 2 and 3, which come with a 24-hour withdrawal limit of 100 BTC, require sharing address information and uploading copies of documents proving residence and identity.

The updated verification procedures are also applicable to the users of all OK Partner exchanges, the platforms participating in Okex’s Open Partnership program. Customers have been informed that they are allowed to have only one account with Okex. In case of maintaining multiple accounts, they have been invited to transfer all their funds before the new limits come into effect.

Unverified Users Won’t Be Able to Withdraw Coins

The team at Okex also warns users that if their accounts are not verified, they will not be able to withdraw cryptocurrencies from the platform. Prior to the introduction of the new policies, Okex clients were allowed to withdraw up to 100 BTC daily without verification.

Crypto Exchange Okex Introduces Stricter KYC RulesHong Kong-headquartered Okex, currently the second largest crypto exchange by daily trade volume according to Coinmarketcap, is one of several leading global platforms with Chinese roots that sought better business climates abroad following the crypto ban imposed in the People’s Republic in September, 2017. In April, the company announced plans to expand its operations to Malta.

Earlier in August, the exchange launched its new white-label solution, Coinall. Businesses that are using it can take advantage of a variety of services offered by the exchange, including its clearing system, cold and hot storage, applicable anti-money laundering (AML) and know your customer (KYC) procedures. Coinall was presented as the first autonomous, community-run crypto trading platform.

What do you think of Okex introducing stricter KYC rules? Share your thoughts in the comments section below.


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Survey: Crypto Exchanges Want Regulation but See Strict Policies as a Threat

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a Threat

The majority of crypto exchanges want to see the industry regulated, although many consider excessive regulation to be the biggest threat, according to a new study. A third of the platforms in the poll also fear a market crash that could suddenly devalue digital assets. A fifth of the exchanges dislike anonymity.    

Also read: Huobi Informs Users on Decision to Launch P2P Trading in India

Crypto Exchanges Want Regulation

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a ThreatA new study reveals that a sizable majority of crypto exchanges, 88%, would like to see regulation in place that can help the rapidly developing industry mature, and a third of the companies trading coins say the greatest threat comes from the perceived criminality of the sector. 17% of the polled platforms, however, believe overly strict regulation is the biggest threat to cryptocurrency and its wider adoption. Another 40% say lifting the barriers to funding crypto activities by banks will improve the acceptance of cryptocurrencies.

The survey has been conducted by a Lithuania-based payment company, Mistertango, which has contacted 24 exchanges across Europe, Asia, South America and Oceania, with a total daily trading volume of over $100M USD. The authors have attempted to assess the attitudes towards regulation, anonymity and the maturation of the crypto market. Gabrielius Bilkštys, Business Manager at Mistertango, commented that “The industry is crying out for regulation and the response from partners has shown this”. He also said:

Uncertainty is the biggest fear, and regulation is critical to provide the stability we need. Unfortunately, there is no regulatory consensus – worldwide or otherwise. For cryptocurrencies to move towards the scale and ubiquity possessed by fiat currency, it needs cohesive, considered and comprehensive regulation. Thus, regulation will be a catalyst, not an inhibitor to the crypto market’s development.

According to Oleksandr Lutskevych, CEO of crypto exchange CEX.IO, the assumption that crypto companies want to avoid a regulated environment is far from the truth. Quoted in a press release, he noted that “Until now, the industry has not had its say on regulation […] The industry is all too aware that regulation will lead to the maturity of the market and ensure businesses remain free from suspicion of involvement with illegitimate uses of cryptocurrency.”

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a Threat

A Call for Banks to Lift Barriers

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a ThreatAt the same time, a very import development that crypto companies would like to see is a change in the attitudes of the traditional financial institutions. Almost 40% of the participants in the study have suggested that this would have the biggest impact on the wider acceptance of cryptocurrency, followed by about 30% who gave priority to increased but also positive regulation.

A key finding in the poll is that trading platforms generally favor the implementation of know your customer and anti-money laundering policies, despite the fact that precisely anonymity has drawn a lot of people to the crypto space. 55% of the questioned exchanges said crypto users should be subject to KYC and AML checks, similar to those employed by the providers of traditional financial services. A fifth of the respondents said that anonymity and the lack of transparency was the biggest threat.

Another important figure in the survey shows that a third of the respondents fear a significant crypto market crash that could unexpectedly devalue cryptocurrencies. They consider the possibility of such an event to be the major threat for the industry and the space, in general.

What are your thoughts on the findings in the study? Let us know in the comments section below.


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Telegram Launches Passport Service for ICO Verification

Telegram Launches Passport Service for ICO Verification

Messaging service Telegram launched a new crypto-oriented feature on Thursday. Telegram Passport is a “unified authorization method for services that require personal identification”. KYC for ICOs in other words, which the Russian chat platform names as one of its intended use cases for Passport. Documents will be secured by end-to-end encryption, and Telegram has promised that the service will eventually move to “a decentralized cloud”.

Also read: More Than 6% of Securities Lawsuits Filed in 2018 Related to ICOs

Telegram Muscles in on Crypto Identity Services

Telegram, led by bitcoin believer Pavel Durov, owes a significant chunk of its user base to cryptocurrency. As the preferred communications channel of tokensales, Telegram is relied upon by the crypto community on a daily basis, making its sporadic outages all the more infuriating for cryptocurrency users. Telegram Passport, its initiative for providing verification services, is a clear attempt at muscling in on the identification market that Civic and Thekey have been cornering. The service also tallies with Telegram’s plans to launch its own blockchain and to integrate a native token into its messaging app.

Telegram Launches Passport Service for ICO Verification

In a blog post announcing the initiative, Telegram revealed its first integration of the service at epayments.com where Telegram Passport users can trial its verification system. There’s also a demo page on the Telegram website where users can see how the verification service will work in practice. Verification options will include passport, driver’s license, utility bill, bank statement, and selfie: the usual methods that ICO participants will be accustomed to.

Telegram Launches Passport Service for ICO Verification

Passport Will Be Convenient but Will It Be Secure?

Telegram Launches Passport Service for ICO Verification
Pavel Durov

Telegram has been locked in a legal battle with the Russian authorities, whose secret service are determined to secure access to the data of domestic users – and probably that of overseas ones too. Pavel Durov’s company has doggedly resisted all such attempts, but despite this, some Telegram users will naturally be concerned about entrusting their most intimate details to the platform, even with the promise of end-to-end encryption.

The ability for ICOs to let Telegram vet crowdsale participants, and to bear the brunt of the expense and data storage responsibility, is sure to appeal. With the use of programmatic bots, it should be possible to whitelist participants who are Telegram Passport members. Aside from the perceived risk of entrusting Telegram with hordes of sensitive information, there is the certainty that a cottage industry selling verified Telegram accounts will inevitably spring up. For every problem that technology solves, it introduces another.

Would you use Telegram Passport? Let us know in the comments section below.


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Crowdsale KYC is Fueling a Black Market for Fake ID

KYC for Crowdsales is Fueling a Black Market for Fake IDs

KYC for crowdsales was meant to add oversight and legitimacy to a largely unregulated space. Instead it’s left investors susceptible to data breaches, identity theft and blackmail. Given the hazards, it’s understandable that some ICO investors have resorted to buying fake ID.

Also read: A BCH Fueled Version of Patreon is Coming This August

KYC Has Created a Thriving Black Market for Fake IDs

Buying fake ID is a rite of passage for teenagers desiring to be sold alcohol. But a new market for fake ID has sprung up on the web, whose buyers crave nothing more illicit than admittance to the latest crowdsale. Know Your Customer (KYC) requirements, which are now widespread, were designed to screen out US and Chinese investors, and to dispel the notion that ICOs are unregulated. But rather than bolstering the industry’s reputation, they’ve created an unholy mess.

KYC for Crowdsales is Fueling a Black Market for Fake IDs
A typical Telegram message offering fake ID

Dedicated Telegram channels specialize in the buying and selling of fake IDs, complete with all the tools an investor needs to pass crowdsale KYC: passport scan, selfie, scanned bank statement; the works. Usually sourced from Russia, these can be bought for as little $50 – and it’s not just Americans and Chinese who are buying them. Investors who reside in countries that permit ICOs have also been snapping up fake IDs as a means of protecting their own identity.

Blackmail, Data Loss and Doxxing

With 80% of this year’s ICOs trading below their public sale price, investing in crowdsales is a risky businesses. Throw in mandatory KYC, and those risks are significantly heightened. A number of projects have been compromised through the hacking of the third party handling their KYC, while others have had their mailing list leaked. In each instance, investors have been susceptible to being doxxed, and there have been reports of blackmail.

KYC for Crowdsales is Fueling a Black Market for Fake IDs

Once hackers have obtained the email addresses of investors, they will either attempt to socially engineer them; sell the addresses on the black market; or claim to have filmed the victim watching online porn, threatening to send the video to their friends and family if they don’t pay a ransom. Given these hazards, purchasing a fake ID to pass KYC seems like the lesser of two evils. Tezos forcing KYC on its community one year after they’d invested, essentially holding their tokens to ransom, has further fueled the demand for fake IDs.

Most cryptocurrency investors accept, albeit reluctantly, that KYC is a requisite for trading on centralized exchanges. The case for forcing KYC on crowdsales is harder to justify. Given the hassle and hazards involved, it’s no wonder many investors prefer to wait and pick up tokens on IDEX, where there’s no verification and coins can often be bought at half the price.

Do you think KYC makes crowdsales safer or riskier? Let us know in the comments section below.


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Withdrawals Delayed – Bitflyer Scanning for Yakuza Customers

Withdrawals Delayed - Bitflyer Scanning for Yakuza Customers

Bitflyer has been delaying deposits and withdrawals of virtual currency in the midst of ongoing KYC verifications. The company received business improvement orders from the Japanese financial watchdog in June as a result of insufficient measures against money laundering. Bitflyer reportedly has delayed resuming business as it is thoroughly verifying its clients’ identities. Bitflyer also has stopped taking new customers last month, and this might go on for a while due to a lack of manpower, Nikkei reported.

Also read: Japan Penalizes Crypto Exchanges – Yakuza Involvement Confirmed

In virtual currency trading, deposits and withdrawals are said to be the main stage of money laundering. According to the Financial Services Agency, the company neglected to confirm the identities of their users, which lead to allowing the anti-social forces or members of the Japanese mafia to trade crypto. For this reason, the company is now reassessing the list of its customers, and all deposits and withdrawals are being currently scanned.

Japan’s Yakuza Are Laundering Crime Money via Crypto Exchanges

Withdrawals Delayed - Bitflyer Scanning for Yakuza Customers
30 billion yen was laundered through various overseas exchanges since 2016.

According to a customer, despite requesting withdrawal on June 25, he was not able to confirm the transaction by the morning of July 2.

Last May, the Mainichi newspaper revealed that some divisions of Japan’s organized crime syndicates, also commonly known as the yakuza, were using crypto exchanges to launder money. The Japanese mafia allegedly transferred more than $270 million of their funds overseas, according to the Mainichi.

“We strongly recommended [the six Japanese cryptocurrency exchanges] to remove all ties with anti-social forces,” the FSA told news.Bitcoin.com.

As the cryptocurrency industry is growing in Japan, the FSA pointed out the necessity for crypto exchanges together with the local authorities to create a increasingly secure environment with proper monitoring systems in place, including screening users’ ID.

Although Japan is historically known for its police force collaboration with the local mafia, also known as the yakuza, recent organized crime exclusionary laws that came into effect in 2011 criminalize individuals or companies who use them to facilitate their business affairs. The authorities send a warning just like the FSA did on June 22, but when persisting in doing business with the yakuza, one may have their name released to the public, be fined, or imprisoned.

What do you think would happen if Bitflyer failed to verify their customers’ mafia involvement? Let us know in the comments section below.


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