As Interest in Crypto Trading Grows, Blockbid Adopts Brand-Name Risk Solutions

In their short history, trading platforms specializing in cryptocurrency have struggled with the suspicion of some that they are helpmates for shady activities that depend on anonymity. To dispel that notion, the Australian exchange Blockbid Pty Ltd. on Tuesday said it is working with LexisNexis Risk Solutions and ThreatMetrix to ensure honest trading.

The move includes such services as identity verification and authentication, as well as know-your-customer solutions, all of which work with both physical and digital identity information, Blockbid says. LexisNexis and ThreatMetrix are both part of the Anglo-Dutch company RELX Group. RELX acquired San Jose, Calif-based ThreatMetrix in January for $817 million.

Blockbid said the combined technologies will help it root out bad actors ranging from money launderers and human traffickers to outright terrorists who might be attracted to crypto exchanges for anonymous financing. At the same time, trading volume on all exchanges has ballooned in the past year as currencies such as Bitcoin soared in value and popularity.

Blockbid said it is one of the first companies to adopt the combined ThreatMetrix-LexisNexis solutions. “The technology, KYC processing, and fraud prevention that they provide will enhance the user experience, empowering our customers to trade with confidence and not worry about fraudulent behavior,” said David Sapper, Blockbid’s chief operating officer, in a statement. “We look forward to opening our doors worldwide to all traders and investors who want to use a platform that is legitimate and provides asset insurance, as well.”

The vendors clearly see an opportunity among such crypto platforms. “Implementing similar controls that the biggest banks in the world use adds credibility to cryptocurrency exchanges from a regulator point of view and instills consumer confidence,” said Thomas C. Brown, senior vice president for U.S. commercial markets and global market development at LexisNexis, in a statement. “Ultimately, these safeguards provide a solid foundation on which Blockbid and other companies can grow, profitably.”