Bitstamp selects Onfido for customer onoboarding services

Onfido provides an identity verification platform, which will assist Bitstamp in processing its amount of new customer signup requests.

The existing infrastructure did not have the capacity to handle all of the new traffic, which resulted in many would-be customers being unable to open trading accounts on various platforms, and caused long delays in transaction speed on the Bitcoin and Ethereum networks.

Bitstamp has been receiving more than 100,000 new account requests daily since December 2016. To their credit, Bitstamp never shut down new customer registrations, even though trading volume on the change increased by over 1,000% in 2017.

As demand for cryptocurrencies has increased, so have the calls for regulations. The US and Japan have both stipulated that digital currency exchanges must comply with Anti-Money Laundering (AML) laws by implementing Know Your Customer (KYC) protocols. In addition, the United Kingdom and South Korea are working on putting laws in place to regulate Initial Coin Offerings (ICOs). All of this is good news for KYC platform providers, such as Onfido.