Aussie Crypto Exchange Blockbid Partners with Risk Management Giant LexisNexis

Melbourne-based crypto trading platform Blockbid has

become the first cryptocurrency exchange in the world

to introduce a new generation of risk management and identity

verification technology developed in partnership

with LexisNexis Risk Solutions and ThreatMetrix.

The partnership combines the 1.4 billion-strong identity database owned by

ThreatMetrix with the LexisNexis database of potentially high risk

identities for the purpose of establishing customer

identities so as to satisfy the most stringent KYC and AML

regulations present in jurisdictions where crypto trading is regulated.

Bringing Crypto Into the Mainstream Fold

This partnership, which follows the $817 million acquisition of ThreatMetrix

by LexisNexis in February 2018, is part of a strategic push by

several prominent players in the cryptosphere to ensure that

digital assets trading has access to the same services offered to

banks including identity verification, risk management,

and prevention of money laundering, amongst others.

Using the two high-quality data banks and proprietary technology provided by

ThreatMetrix and LexisNexis, Blockbid plans to piece together

accurate identification profiles that can be used to screen out

high risk users at the onboarding stage. The system

uses datasets like addresses, biometrics, government-issued

identifiers with device identification, geolocation, behavioural

analysis and threat intelligence in tandem with each other to

create highly accurate identity profiles which in turn prevent

high risk users from gaining access to the Blockbid platform.

The development comes at an important time when banks

and institutional investors are waking up to the promise of the $300

billion cryptocurrency market while still holding back from fully engaging

wit the market. Banks for example, are famously reticent about

offering corporate accounts to cryptocurrency exchange platforms

because of the risk of violating AML regulations. Using this system

according to LexisNexis, the risk of facilitating illicit flows can be vastly reduced.

Speaking about the projected outcome of the partnership,

Thomas C. Brown, senior vice president, US commercial

markets and global market development, LexisNexis Risk Solutions said:

“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.

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. Ultimately

these safeguards provide a solid foundation on which

Blockbid and other companies can grow, profitably.”