Newly developed exchanges has to hold on to different strategies to provide a secured service for their exchange platform. Recently, we can see the updates of Local bitcoins for enhancing the security of the exchange based of the active engagement of the users in the platform.
The verification process introduces 4 different account tiers differentiated based on the trade and transaction volume and a progressive verification system, where users gradually verify their accounts as their activity in the platform increases.
In order to insure that the a reliable and efficient verification process, LocalBitcoins has teamed up with Onfido, a leading identity verification technology provider.
The new Account Tier structure is described in the table below, with each Tier’s verification requirements and their respective volume limit. The ID verification and Tier status of each user will be available in the Verification tab of the “Account settings” page, where up-to-date incoming trade and transaction volume will also be displayed.
Incoming trade and transaction volume is calculated according to the account’s data on buy trades and received Bitcoin transactions from the past 12 months. The next Tier verification is required when incoming trade and transaction volume reaches the current Tier limit.
T1, T2 and T3 accounts will be able to send and receive transactions, create advertisements and complete buy and sell trades normally. To accounts, i.e. users who have only onboarding verification, can complete buy and sell trades but will not have a LocalBitcoins receiving wallet address neither be able to post ads.
This is like a four way shield for any security breaches on an exchange platform, these kind of features can be very well added while developing crypto exchange platforms. If you are into developing an exchange like Localbitcoins then reach out to us.
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