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In keeping with recent regulatory interest in providing a framework within which Bitcoin exchanges can operate, thus reducing exposure to investor risk, many virtual currency exchanges are forging ahead with technological advancements which offer customer protection, ultimately sharing the responsibility with the authorities.
Coinsetter is the latest virtual currency exchange to introduce a highly advanced security measure, with its new multifactor authentication platform, LaunchKey for Coinsetter.
Earlier this month, New York’s state financial regulatory authority publicly stated that it was poised to implement a set of rulings for Bitcoin exchanges, with Coinsetter being well poised to benefit from this at its New York City headquarters.
Coinsetter’s new LaunchKey functionality utilizes biometric facial recognition and biometric fingerprint scanning to authenticate who has access to customer accounts, a method which the company considers to offer far higher security than can be provided by traditional passcodes.
According to Coinsetter, the biometric information which is used to protect Coinsetter accounts is also encrypted on customers’ mobile devices, never on LaunchKey or Coinsetter servers, in order that all personal biometric data is never at risk of being compromised.
Coinsetter has also extended the biometric facial recognition facility to mobile platforms, as it is available on both iOS and Android devices.
Biometric fingerprint scanning is available on Android devices and will soon be available to iOS users with the release of iOS 8.
This development is the second series of advancements in which Coinsetter has invested within the last few weeks, the company having updated its withdrawal system in early July.
There has been considerable discourse regarding withdrawals from bitcoin exchanges recently, with MtGox having had a series of withdrawal-related maladies, culminating in the collapse of the entire venue and subsequent bankruptcy, leaving several customers high and dry with no means of reclaiming their investments.
Coinsetter has responded to this discourse by promising faster Bitcoin withdrawals via its updated withdrawal system which, Coinsetter claims, substantially reduces the time it takes for withdrawals to be processed from secure cold storage.
The exchange also added a new Streaming Websockets API. With this, traders can monitor quotes and trade executions on Coinsetter in real time. Through the Websockets API, traders can access the lowest latency trading experience available in the bitcoin market.
An encouraging sign that Bitcoin proponents and industry participants are welcoming the governmental acceptance of virtual currencies is evident in this increasing safeguarding against the major concern for many Bitcoin investors – security of their funds, which in the case of Bitcoin is more critical than security of sovereign currency.
Coinsetter’s efforts to ensure customer protection in this manner combined with the regulatory backing of New York’s financial regulator may well be a great combination with which to increase investor confidence and take Bitcoin further into every day use alongside sovereign currency.