Blockchain, a prominent bitcoin wallet service provider with over 50 percent in market share and nearly 10 million wallet users, secured a strategic partnership with leading blockchain payment and trading service provider, Coinify, to enable instantaneous bitcoin wallet funding.
Peter Smith, CEO of Blockchain, states that the deal with Coinify allows users to avoid lengthy delays resulting from purchase orders and extended Know Your Customer (KYC) and Anti Money Laundering (AML) verifications to purchase bitcoin in a more secure and efficient manner.
The elimination of heavy identity verification and other forms of confirmation means that neither Blockchain or Coinify will be required to handle the personal and sensitive information of its users, significantly reducing the possibility of data breaches and hacking attacks.
Smith stated: “For the first time, users will not be subject to the delays, complexities and security risks that have plagued digital currency adoption in the past. This partnership will make our wallet infinitely more user friendly and, ultimately, more accessible for the mass market.”
The Blockchain development team plans to test the Coinify integration with a small group of invite only participants in the U.K. Upon the completion of its successful beta testing, Blockchain aims to expand its services across Europe and ultimately around the world.
Executives of Coinify and Blockchain expect that the partnership will serve both banked and unbanked populations globally, by allowing bitcoin wallet funding via credit and debit cards as well as bank accounts.
With the emergence of prepaid debit cards that are popular amongst unbanked users who have struggled to obtain formal bank accounts, the Coinify-Blockchain user interface will enable these marginalized users to purchase bitcoin without being restricted by KYC/AML regulations and strict exchange trading limits.
Smith described the deal as a “giant step forward in making bitcoin, still a nascent currency, a more compelling and efficient financial solution for new users,” reassuring users that the platform will provide a safe and cost effective method for bitcoin trading while maintaining its high security measures.
Coinify Co-Founder and CEO Mark Højgaard also noted the importance of accelerating mainstream adoption of Bitcoin, emphasizing the potential impact the deal could have on millions of existing and new users.
“Coinify shares in Blockchain’s mission to accelerate the adoption of digital currencies by making them more easily accessible. With Blockchain’s dominant position in the cryptocurrency wallet market, I believe this will be a real game changer,” said Højgaard.
Over the past few years, KYC/AML regulations for bitcoin trading platforms and exchanges have made bitcoin funding burdensome for many users.
Some exchanges, including Philippines-based Coins.ph, which recently secured $5 million from former Google CEO Eric Schmidt’s investment company, require users to hand in various documents and perform identity verifications, such as selfie verification and face-to-face Skype calls.
When asked about their AML/KYC requirements, the Coins.ph customer service team stated: “Unfortunately, this is the requirement coming from the BSP (BSP Circular No 706). We are obliged to establish face-to-face relationship with you. We try to do this as painlessly as possible through Skype over a five to 10 minutes discussion.”
Joseph is a web developer and designer, writer and a passionate musician who loves to travel. He has worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines.