Image taken from: https://shuftipro.com/blogs/protect-your-bitcoin-business-with-kyc-compliance/

Problems a Bitcoin Business Faces

Online identity verification services may solve the main problem a bitcoin based business faces, i.e. its exploitation through fraudulent transactions. If bitcoins are stolen, lost, or even if the payment is made without intention, there is no way to reverse the process. Once ‘send’ is hit, the action cannot be reversed, incurring huge losses to the customer. Hackers and false customers looking to launder money are always around to benefit from the situation, considering the ever-increasing value of the bitcoin. The loss to the customer is permanent, however it can be prevented through proper identification before beginning the transactions. This is where Shufti Pro steps in.

Safeguarding your Bitcoin Business

Shufti Pro integrates with their client’s business and verifies the customer for them. The application complies with the Know Your Customer (KYC) strategy and keeps up with the AML requirements, implementing them through proper identity verification. As soon as the customer shows interest in dealing with a business, Shufti Pro will be there for the clients as a security provider and fraud protection service, denying the deal on spot.

Online identity check is needed since there is no centralised authority that looks over the bitcoin, and it is produced by the entire cryptocurrency system collectively, it only exists in the ledgers that document its transactions. It only records the payers, payees and the amount being exchanged. They are not answerable to any centralised agency unlike the banks, hence, exchanges in a bitcoin based business are quite prone to frauds. Shufti Pro can act as their guardian and prevent consumer losses by identifying fake customers who deal with the businesses with the intention of committing theft. Specialised personnel who are expert at dealing with the fraudulent consumers effectively distinguish them from the real ones.

The digitalisation of this process (i.e. KYC verification online) not only saves time and money but also resources that could be put to better use. ID verification through the manual methods are time taking as people have to wait in long queues. These processes are also prone human errors in judgment and the losses are too high (typically in millions of dollars) for the risk to be taken. Hence, Shufti Pro is the clear choice to go!

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[This article may originally be found at: https://shuftipro.com/blogs/protect-your-bitcoin-business-with-kyc-compliance/]