Blockbid Arranges Partnership with LexisNexis To Enhance Exchange Security
LexisNexis decided to sign a partnership with the crypto exchange Blockbid so as to enhance its security measures. LexisNexis is an important risk management company which has been growing during the last months.
Back in February, LexisNexis bought the security technology firm ThreatMetrix for over $817 million dollars. This decision helped the company to equip itself with two databases – one is its existing one and the other with 1.4 billion unique identities obtained from ThreatMetrix.
With the partnership, Blockbid became one of the first cryptocurrency exchanges in the world to impose global anti-money laundering measures. This is very important, during the last months, several countries that were very opened towards virtual currencies, such as Japan, decided to impose stricter rules to crypto exchanges.
Moreover, Blockbid wanted to increase its security and fight illegal activities including money laundering, terrorism financing, and tax evasion. Moreover, the exchange has also decided to revamp fraud prevention by launching its ‘Trade with Confidence’ system related to better KYC measures.
Thomas C. Brown, senior vice president, U.S. commercial markets and global market development at LexisNexis Risk Solutions, commented:
“We are helping Blockbid identify and stop bad actors, we also are reducing friction for legitimate consumers so that they can transact easily and be active in the cryptocurrency space.”
By implementing similar controls as the ones banks implement, it helps add credibility to crypto exchanges from a regulator point of view and increases consumer confidence. This would allow companies, including Blockbid, to keep growing complying with all the rules and profitably.
At the same time it is very difficult to track how virtual currencies operate, for example the so called privacy coins. ThreatMetrix claims that the digital identity network uses the location of customer devices and behavioral information, allowing only permitted users to access their account.
According to Alisdair Faulkner, Chief PRoduct Officer at ThreatMix, a LexisNexis Risk Solutions Company, said that crypto exchanges like Blockbid face a complex set of challenges and threats.
“The best way to tackle global cybercrime is using the power of a global shared network. The ThreatMetrix Digital Identity Network collects and processes global shared intelligence from millions of daily consumer interactions including logins, payments, and new account applications,” said Mr. Faulkner.
Blockbid is one of the first crypto exchanges in Australia that obtained the AUSTRAC’s license. In the next year, the exchange will be introducing different trading options against at least seven different fiat currencies that will include USD, AUD, JPY and EUR.
Blockbid’s COO, David Sapper said that the alliance will allow LexisNexis Risk Solutions and ThreatMetrix to accelerate Blockbid’s strategy to be the world’s most secure cryptocurrency exchange.