Bitcoin Exchange Institutes Verification Process

June 3, 2013

The market for online digital currency Bitcoin, which saw staggering volatility earlier this spring, could be in for a smoother ride as the world’s largest Bitcoin exchange (and, the one many point to as the cause of a massive drop in the virtual currency’s value) has just launched an identification system for users. Consumers that want to buy, sell or trade Bitcoins at Mt. Gox, are now required to go through personal verification—a first for the largely anonymous currency—to perform any currency deposits or withdrawals.

“The Bitcoin market continues to evolve, as do regulations and conditions of compliance for Mt. Gox to continue bringing secure services to our customers,” said a statement on the Mt. Gox Website. “It is our responsibility to provide a trusted and legal exchange, and that includes making sure that we are operating within strict anti-money laundering rules and preventing other malicious activity.”

While the verification rules apply to deposits and withdrawals of hard currency, deposits and withdrawals of Bitcoins are not subject to verification.