Jumio creates Bitcoin security network
Jumio Inc., a credentials management tech company, today announced the formation of the Bitcoin Identity Security Open Network. Initial members of the network include eight Bitcoin exchanges, wallets and ATM providers worldwide: BitAccess; SnapSwap; CoinMkt; Digital Currency Exchange of Texas; CoinRnr; Hashop.io; NoveltyLab; and Bitnet Technologies.
Jumio said in a press release that as the Bitcoin industry matures, industry participants see value in proactively self-regulating and adopting best practices rather than have standards be imposed by outside entities.
The BISON Network is designed to instill greater trust and confidence in the Bitcoin ecosystem by providing exchanges an efficient way to collect and validate buyer identities at the point of transaction via any connected device, according to a statement.
Transacting customers hold up their driver's license or passport issued by any one of more than 100 countries to the camera in their device and Jumio's integrated technology Netverify scans and validates the ID, extracts the personal info it contains, and populates it into the transaction form. The entire process takes place in real time and contributes to higher completion rates due to its speed and improved user experience, Jumio said in the statement.
The buyer's identity is used solely in the relationship with the exchange or wallet and does not change any aspects of the Bitcoin transaction flow, Jumio said.
Additional functionality will roll out this summer, enabling an opted-in, validated customer on one exchange to be automatically validated on another without rescanning an ID. BISON members also receive periodic reviews of fraud trends within the network.
"We believe that crypto-currencies, and Bitcoin chiefly among them, are an important new part of the payments world, however, to reach their full potential it’s time to instill a higher degree of confidence in the system," Daniel Mattes, Jumio founder and CEO, said in the press release. "The vast majority of Bitcoin users are honest and engaging in a range of legal transactions, but a small minority are not and that threatens the entire ecosystem, especially during this formative period. BISON is designed to minimize the problem by weeding out those who use false or manipulated IDs, which is a strong indicator of intended fraud or other illegal activity."