Bitcoin exchange TradeHill boosts security with miiCard
02 May 2013 | 7927 views | 0
Recently-reopened US bitcoin exchange Tradehill has moved to beef up its security through a partnership with online identity verification start-up miiCard.
TradeHill launched in mid-2011 but was forced to close its doors within six months, blaming widespread identity fraud, an associated fall-out with digital payments outfit Dwolla, and regulatory concerns.
With $400,000 in seed funding in place, the company relaunched in March with its Prime digital currency exchange aimed at businesses and accredited investors. People who sign up for the service are given $75 in credit to test trading and can then fully activate their account with a deposit of at least $10,000, 200 bitcoins, or $5000 in Mt. Gox codes.
For security, TradeHill has enlisted miiCard, a UK-based start-up which provides people with a digital passport that can be used to prove that they are who they say they are on the Internet in real time. The passport is owned and managed by the consumer, enabling them to track, monitor and take control of their online identity.
Prime users must verify their identity with miiCard before withdrawing any funds from the exchange, making Tradehill compliant with all anti-money laundering and know-your-customer requirements.
Jered Kenna, founder, TradeHill, says: "We are committed to exceed government compliance standards at every opportunity. miiCard's identity proofing capabilities allow us to identify red flags early in a transaction to better support anti-money laundering efforts."
James Varga, CEO, miiCard, adds: "Tradehill isn't alone in their experience of identity theft. New account fraud in the US increased 50% last year, driven largely by identity theft. It is critical for businesses dealing in bitcoin or any other regulated financial service to provide a level of trust and confidence for their customers while meeting compliance thresholds."
How miiCard works: