“Video ID”: prospects for a new cryptocurrency market identification system


The company Bitlish commissioned the development of a system of videooriginal. It is a complex multi-component mechanism that uses, including the development of IBM and Microsoft. Thus Bitlish became the world’s first cryptocurrency company to start to use videooriginal the identity of their customers.

How the system works video identification, and what advantages it can give to participants of the cryptocurrency market, the correspondent Bits.media said the product Manager Bitlish Max grain.

Max, what is the company Bitlish?

It is a cryptocurrency platform to run a cryptocurrency exchange, multi-currency mobile wallet for iOS and Android, merchant services for accepting cryptocurrency payments, processing cryptocurrency payments, services, listing of digital assets and service verification (AML/KYC). In addition, we have an API for trading and statistics that use trading bots and third-party apps from independent developers, and the crypto card, which, incidentally, are preparing to restart this year.

How has it evolved?

Bitlish founded in 2015 and is registered in the UK. Until 2017, she has been active in developing the individual products exchange, wallet, cryptocurrency terminals. In 2017, we have revised the approaches and changed the emphasis of the effort: frosted terminal direction, built the customer service and support, focused on improving the performance of the platform, its improvements have been certified by PCI DSS, acquiring changed partners, changed the Bank, began to provide services on the b2b market, has added a new cryptocurrency, three times increased the number of trading pairs, redesigned mobile wallets, began obtaining financial licenses.

Now we are very close to becoming world TOP-50 exchanges in terms of daily trading volumes. For some trading pairs we are already in the TOP-3. Our quotes and trades transmitted in data channels company Intercontinental Exchange used by such major services as TradingView, for example, whose audience is more than 50 million monthly users. Until the end of the year we plan to re-start production of the crypto cards. Next year will change the design and interfaces of website and mobile wallet, there will be new features and services for investors.

What was the reason for the development of own systems of videooriginal?

Now the term videooriginal has no single value of the technological standard also does not exist. Someone under it understands recognition of the type of document and the text on it, some face recognition and the mapping of the user’s face with the photograph on the document, someone- just the way/format of sending data, some advanced data set for analysis. Of course, there are combinations. A quick search online will show you dozens players in the market offering this service as SaaS. For the year in my eyes a couple of companies had even closed. There are also companies that conduct the ICO on this topic. This instability, plus scrupulousness in matters of personal data have become an argument in favor of its own design.

At what stage is the implementation of the video ID?

The service is undergoing trial operation, he is preparing for the release and sale on the market. We already launched at the request of one European Bank, the service uses approximately 3% verificarsi. It works in test mode on the website, soon will be the launch of our mobile app — cryptocurrency wallet Bitlish. In General, the fashion for videooriginal in Europe asked German banks. Legally this process there is clearly not settled, and the technology they use more often and on their own initiative.

How does it work?

Videooriginal uses for analysis is not a static image, and video. If earlier the user was required to upload a photo or scan, but now he needs to load for the analysis of the roller length for a few seconds, usually no more than 15.

I will briefly outline the process that performs the user during the procedure of videooriginal. Suppose you have registered in our application and want to buy bitcoins and pay using credit card VISA/MC. We have to conduct the KYC, here comes in our new service. The client records a video where he pronounces his name, says this video for Bitlish, shows the passport, shows the document proving the place of residence, and if it is a resident of at-risk countries, it also shows an additional document, such as a driver’s license. After that, the video is downloaded to our system. To make video processing on the user’s device systemically costly, so the video is sent to our servers and analyzed there.

Is it possible to call the system a video-ID — a qualitatively new model of identification?

From the technology point of view, a qualitative change here, only the data format and processing algorithms. In the rest of the method will not be called a revolutionary. But from the user point of view it is really a new quality and, most importantly, speed. You’re not just taking pictures “passport” and look at the camera, smile and even say something. People it’s easier and more convenient. The fingerprints of humanity takes a long time, but remember how the audience cheered when the scanner built into the smartphone!

What are its advantages?

First, the system increases the number of verificadas. Second, it facilitates for the client a process of providing information about themselves. Third, the system reduces the waiting time of verification by the user. Fourth, reduced the number of failures for technical reasons, the number of typos and the likelihood of fraud. Finally, videooriginal increases the security services in General.

How videooriginal — a common phenomenon in the cryptocurrency market?

It is already in use on the cryptocurrency market, but usually it is taken in terms of outsourcing, in any case, the services that provide this service claim it. In particular, Onfido writes that its services are used by Bitstamp. IDnow calls among their customers Bitpanda. And so on. I find it hard to judge the scale, most likely this is only done as an experiment, but not in droves. Otherwise, the exchange would not have problems with the registration of new customers and verification of the end of 2017.

Now you are planning to sign an agreement with the Bank. What will be its essence?

We have a prior arrangement with the head of the Center for digital transformation in terms of consolidation of efforts to develop new technologies. We understand that in Russia in the absence of legal regulation to talk about cryptocurrency exchanges early, but the technology is long overdue. We are ready to help the EBV in the development of technologies for user authentication, carrying out Bank transfers and custody. We have the experience and resources necessary. So I hope that the cooperation will be productive and long-term. In the future we plan to develop our cooperation with VEB to create a large technology laboratory to pilot projects.

Are banks in their internal system without KYC expectations of the FATF recommendations to work with you?

When it comes to money customers, Yes, we are, after all, we are in fact fulfill the requirements of the FATF. And we are ready to provide the Bank with the necessary information. Our customers can consent to it. This requirement is part of the agreement for our services.

This is a completely trivial practice. First of all, we do not provide our services in countries that are in the black list of the FATF, and all customers upon verification of the individual screened for presence in databases of international terrorists, the presence of other constraints.

When the client makes money on the exchange from the Bank, he must verify your identity and your Bank account. The Bank may ask for what purpose a customer withdraw funds, but this is rarely how we see.

When a client is withdrawing from us Fiat funds to your Bank account, the Bank takes them and asks questions to the client. The client explains the origin of funds. This is enough, this all usually ends. If the Bank wants to be safe – it is also a rare case – it queries the data we have and gets them. Usually, banks are pleasantly surprised with our fitness.

How do you assess the willingness of banks to work with cryptocurrency exchanges in the world in General and in Russia in particular?

At the end of last year, one consulting company shared the results of their research. They spent a solid roll call of banks around the world with one question: “are you Ready to serve a cryptocurrency?”. In eleven jurisdictions, there were 13 banks who gave a positive response.

In practice, things are bad. Stock exchanges are forced to use the services of banks and various financial institutions substitutes, a list of services they have is limited, the rates are too high, the transaction have to prepare supporting documents. Some exchanges build complex organizational scheme, they get all kinds of licenses that allow them to legalize cash flows. Others served in less demanding jurisdictions, offshore areas. Still others do not work with Fiat currencies and are forced to Dodge, capping their spending cryptocurrency. The situation is typical for the whole world. The exception is the blockchain-the sandbox and countries where there is already a regulation.

This year, banks have new trend. If before the word “cryptocurrency” they just gave failure, now at first I was wondering whether you are operating a cryptocurrency, architectural allow anonymity, for example, monero. If you are operating, you recommend to stop doing it and come again.

And how exactly you interact with the banking system?

If to speak about us as a company, we have accounts in European banks and financial institutions. They allow us to carry out operations, to make payments with counterparties worldwide to serve clients. We do not use offshore, not building circuits. Our account – the result is a stable demonstrating normal operation of the company. We show banks momentum, the principles of our work using the most reliable security technology, we pass certification. Trust us, and we appreciate this. With obtaining licenses, many fears banks will be removed automatically, but we plan to continue to try to keep the bar high.

If we talk about our customers, they can replenish their accounts on the exchange through Bank transfers (SWIFT, SEPA) and withdraw funds from exchanges into their account. This applies to b2c and b2b markets. Individuals pay a Deposit only 0.25% + € 10, the output is 50 Euro. It is allowed to introduce/withdraw up to 100 thousand euros. Legal entities replenishment costs only 0.1% of the transfer amount, the withdrawal is 50 Euro. The daily limit is 1 million euros. Clients who work with us for a long time, who have an impeccable reputation, limits can be extended. To date, few of which market can boast of such large size limits. A prerequisite for Bank transfers is a preliminary verification of the Bank account. The client must provide a Bank statement proving that it is his account before making the transfer. Withdrawal/Deposit of funds in foreign accounts are not possible. The number of Bank accounts we do not limit. Importantly, they were all verified and belonged to the client.

Max, share plans Bitlish in the near future?

First, we plan to launch other cryptocurrency card. They are different, will the cashback in bitcoin, payouts for the maintenance of balance. Just imagine that you have only to keep cryptocurrency wallet Bitlis and get even more of the cryptocurrency. You don’t need to worry about which currency card account or at what rate converted your payment — they will always be at the best interbank rate. For those who want to use cryptocurrency via fiaty equivalent, we will offer the world’s largest withdrawal limits.

Second, we plan to conduct a redesign of our website and multicrystalline wallet. In addition to a new appearance, there will be a more convenient interface for traders and services to investors.

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