Bitcoin trading: security

2

I have seen different trading websites on Bitcoin and a question came to my mind:

Security Why do they require so much identity verification? If I remember correctly MtGox (despite what later happened) when it started, it didn't require any id\bank verification. So my question here is: is identity verification required by law even when dealing with bitcoin trading or is it an anti-fraud system enacted by the trading operator?

Mark Thompson

Posted 2014-07-19T20:39:47.457

Reputation: 31

1Please ask unrelated questions in separate posts. I am editing out your second question; you can view it in the edit history if you want to paste it into a new question. – Nate Eldredge – 2014-07-19T22:17:27.453

Answers

3

All services that deal also with fiat money, apart from cryptocurrencies, must comply with specific AML (Anti Money Laundering) and KYC (Know your customer) rules, which can be more strict depending on their jurisdiction.

AML/KYC Explained: https://bitcointalk.org/index.php?topic=454795.0

George Kimionis

Posted 2014-07-19T20:39:47.457

Reputation: 2 824

Asked: 2014-07-19T20:39:47.457

Viewed: 94 times

Active: 2014-09-21T10:17:24.277