Peer-to-peer Bitcoin marketplace Paxful has teamed up with digital identity and address verification firm Jumio to bolster anti-money laundering (AML) procedures and implement Know Your Customer (KYC) requirements into the marketplace.
According to a media statement issued by Paxful, Jumio's AI-powered Trusted Identity Service and verification process will help minimise risk "and ensure all users have submitted proper documentation."
The technology will be used to combat fraud and maintain compliance when on-boarding users.
"By adding Jumio's ID verification to the platform, Paxful has taken a stance to improve its AML procedures and compliance program in every operating country," reads the company's statement.
"Through Jumio's AI-powered Trusted Identity Service, Paxful will now be able to verify customers' real-world identities, with a simple ID scan and real-time biometric authentication and liveness detection which will go into full effect in April," it continues.
Paxful will now require users around the world who reach an equivalent of US$1,500 in trade volume or wallet activity to verify their accounts through ID verification.
In addition, users who reach US$10,000 in trade volume or wallet activity must provide ID verification as well as address verification.
Upweighted global security team
Paxful has also announced its investment in a new Compliance and Information Security team, with Lana Schwartzman to serve as Chief Compliance Officer.
According to Paxful, Lana has 14 years of experience in compliance and anti-money laundering and prior to coming on as CCO at Paxful, she was a manager in the Regulatory and Compliance Risk Group at Grant Thornton LLP.
"Her compliance experience included working in Deutsche Bank and Morgan Stanley. She will be enhancing the current compliance program and growing the existing compliance team to better serve the needs of Paxful's customer base," the company adds.
Dmitry Moiseev also joined the Paxful team as Information Security Manager.
Paxful says Dmitry has over 12 years of experience in Information Security and is an expert in high-risk personal data security in the financial sector. Prior to joining Paxful, Moiseev was an Information and Security Manager at Western Union.
Schwartzman said: "We take compliance and security very seriously here at Paxful. We're hoping that these and other upcoming changes will help our customers understand the importance of regulation and compliance when it comes to operating on a peer-to-peer finance marketplace. Paxful now reaches over 2 million people worldwide through our P2P trading platform. When operating at such great numbers dedication to strong security measures that align with a future goal of enhanced oversight and compliance, will provide a better customer experience by affording a greater degree of trust and transparency for all customers".