Bitcoin Exchange Deploys ID Authentication Services

BtcQuick, a Bitcoin exchange, has deployed miiCard’s identity verification service to comply with Know Your Customer and Anti-Money Laundering requirements and help deter fraud risk.

MiiCard has a suite of ID verification products, including photo authentication, daily revalidation and real-time verification.

In btcQuick’s first 30 days using miiCard’s online identity proofing service, the exchange completely eliminated chargebacks from identity fraud and cut administrative costs, the company says.

“MiiCard is far superior to our previous bureau data and document scanning process, plus our customers prefer the easier interface and experience,” says Jerrod Bunce, founder and CEO of btcQuick, in a press release. “We deployed miiCard in just a few hours' time and it delivered an immediate [return on investment] while freeing up development resources for core business needs.”

The ID proofing company also cleaned up btcQuick’s customer sign-up process, which was a labor-intensive offline process. With miiCard, customers create an online ID and use that to logon during future visits to the exchange.

MiiCard has been working with other Bitcoin businesses as well, including Tradehill Inc., which used to operate as a trading platform before regulatory hurdles stifled a relationship with Internet Archive Credit Union.

“Bitcoin is a disruptive new financial force, but companies operating within that market still face the same fraud risks and must meet the same regulatory compliance thresholds as traditional financial institutions,” says James Varga, CEO of miiCard, in the release.

MiiCard also works with Toopher, which uses a phone’s location as part of the authentication process. MiiCard, along with other payments companies including PayPal, are using a mobile device’s unique attributes to provide added security for mobile payments.