At the Money20/20 Europe Conference last week, Coinify announced a partnership with iSignthis which will enable users to purchase Bitcoin on the Coinify platform via major credit cards.
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New Coinify Partnership Aims to Increase Bitcoin Accessibility
Through directly tying a user’s identity to transactions, the move signals a strong and legally compliant synergy, one which will likely prove to be a fantastic case study for the industry. As the Coinify press release read, “In a world first, identity will be able to be linked by end users to transactions, in order to meet AML/CTF regulations for customer due diligence and KYC.” The move to accept credit cards will open even up the Coinify platform to international trade, creating opportunity which was previously unrealized.
Such a mutually beneficial partnership promises to appeal further to the mainstream user, as credit card capabilities give the platform a new and widespread avenue for payments. Speaking to the benefits of the partnership, Coinify CEO and co-founder Mark Højgaard remarked, “Cooperation with iSignthis strengthens our efforts for proactive compliant regulation and gives us high integrity. Coinify can now offer even stronger product, both in terms of usability and accessibility.”
Additionally, Hamed Sattari, CTO at Coinify, spoke on the functional details of the product and the benefits that using a credit card for Bitcoin purchasing will provide. Mr. Sattari recently remarked, “Buying bitcoin is often associated with a cumbersome verification process and slow delivery times. Allowing customers to securely buy bitcoins and have them delivered instantly is a very sought after service in the eyes of our customers and also one of our main goals. Using iSignthis’ services, we get a strong customer authentication and a smooth KYC process that ties cards to a specific user. This provides us with a secure token that can be used onwards for making instant purchases with extended security and PIN code.”
For veteran Bitcoin users, the announcement is welcomed. Many remember the days of having to wait three days or more to receive Bitcoin, and also having to wire money to exchanges. The ubiquity and familiarity of credit cards gives Coinify a competitive advantage compared to other exchanges, as credit card payments are likely to attract new users to the Coinify platform which supports trading of up to 17 blockchain based currencies.
The partnership is likely to be embraced in the regulatory community, too. Identity is at the core of whether or not traditional players can legally help facilitate Bitcoin acquisition, and the due diligence provided through the partnership demonstrates the types of collaboration that are needed for Bitcoin service providers to remain compliant as they expand services and push towards expanded adoption.
What do you think of the partnership? What affect will purchasing Bitcoin with credit cards have on Coinify’s user base? Share your thoughts below!
Images courtesy of Coinify.