With Bitcoin, it can be difficult to know who’s on the other end of the transaction. Paxful is hoping to fix that problem through a new partnership with Jumio. The former is the world’s second largest peer-to-peer Bitcoin marketplace, and will be using Jumio’s identity verification services to raise the level of trust its users have in the trading platform.
Paxful will be integrating Jumio’s services in a number of different ways. Most notably, it will require ID verification for any user with $1,500 worth of activity, as well as an additional address verification for any user whose activity climbs to $10,000. Users who refuse to provide verification will still be able to use the platform, but they will have limits placed on their accounts.
The Jumio system will be fully implemented in about one month, at which point an ID check will be required for anyone posting an offer and any bank transfer. Until then, vendors will be able to request checks from potential trading partners.
The partnership with Jumio should add transparency to Paxful’s platform and give people more confidence in transactions on the site. In that regard, it’s worth noting that Paxful is responding to user demand, and is not the first cryptocurrency player to turn to Jumio for identity verification services. Jumio’s tech is currently being used to safeguard CasinoCoin and the Monaco exchange. It has also been used to protect more traditional financial institutions.
Source: The Paxful Blog