Coinbase is improving ID verification

Machine learning will now aid the security measures
09 February 2018   2237

On February 7th Coinbase has made an update concerning identity verification. The company incorporated machine learning into the verification process. With this upgrade the process will take seconds instead of hours. In addition to that Coinbase has integrated an addtional ID verification vendor to address the growing volume of the applications.

With these improvements Coinbase is now able to successfully verify ~90% of all the ID verification applications. As the company has experienced a significant growth, it addressed the failed ID verification applications by providing clear instructions on how to take a more legible photo of an ID. On top of that, the company will now also send an email to the person with a failed ID verification application stating the reason why the application was rejected and applicable solutions.

These updates are already present on the Coinbase website. As for mobile applciations, the improvements will be rolling out in the next few weeks. Finally, the team annonced the creation of a special engineering team that will design internal identity service from the ground.

Here is just a couple of reactions at Twitter:

@DNBRS117 said “Sounds like a perfect application for @singularity_net”

@optictopic said “I hope it isn't going to work like the biased AI state governments use to pass criminal sentencing or that banks use to approve loans. Algorithms should never completely replace human discernment but work in tandem. #blackboxai”

Users on Coinbase official blog at Medium commented as follows:

Jason E said “You need to make it clear in your error that there can’t be any extra space outside the ID as I failed numerous times and it wasn’t clear why.”

Petroleum Blockchain said “That was super frustrating. Hopes it will improve a lot. But also your “security measure” each time one want to send crypto to another wallet: this so called 72h security verification are just unacceptable. We login, use Google AUTH and we are logged. At that moment, you accept buying, selling cryptos or depositing FIAT. There are no reasons now we can’t send our crypto (after enormous fees) immediately. You must change this process. I have lost money, time and patience having to endure your process. Security matter, but sounds more like you don’t want money to leave your exchange. One of a kind in the exchange industry.”

Coinbase to Close Chicago Office

Despite half of billion 2018 revenue, 30 employees of the biggest US crypto exchange are going to lose their jobs
24 April 2019   99

The leading cryptocurrency exchange and the wallet provider Coinbase decided to close its office in Chicago. About 30 employees will lose their jobs, said President and COO Asiff Hirji in an interview with the Wall Street Journal.

The Chicago unit focused on high-frequency trading (HFT) traders, and the potential increase in activity in this area could lead to an increase in Coinbase trading volumes and revenues. However, this direction, apparently, is no longer included in the priority list.

HFT companies play a large, albeit controversial role in the US stock and futures markets. According to some estimates, they account for about half of the daily trading volume on the stock exchanges, but more traditional investors are wary of them, suggesting that such firms take profits from them, going in and out of stocks, while slower players make deal.

Coinbase announced plans to attract HFT traders through technical updates, including speeding up the engine for matching trade requests last year.

Asiff Hirji also noted that as of the end of 2018, Coinbase had about 600 employees, and despite the elimination of 30 jobs in Chicago, the company intends to further expand this number.

Earlier this month, it was reported that in 2018, a Californian company, despite the market decline, earned about $ 520 million.