The popular online gaming platform Chess.com recently announced the discontinuation of Bitcoin [BTC] and Bitcoin Cash [BCH] as a payment method for premium subscriptions.
CEO Erik Allebest stated that the option had to be taken out due to Know-Your-Customer [KYC] compliance issues. He mentioned that BitPay, the platform’s Bitcoin payment processor, was refusing to accept payments valued over $10.
The announcement drew the attention of a lot of Redditors who questioned the decision.
Allebest explained that Chess.com’s crypto payments were earlier handled through Coinbase’s payment processing system. However, there was major depreciation of the payment links in the past, which led to the cryptocurrency exchange announcing the introduction of Coinbase merchant. The change of merchant added to the recurring conditions of reduced volumes and interest in the crypto market, contributing to their immediate termination.
The KYC compliance obligation surfaced when Allebest first noticed that the receipt of 100 automated emails from BitPay, with the subject marked as ‘Cannot receive payment.’ He claimed that BitPay did not make the $10 limit condition prominent enough in the registration process.
He furthered stated that the KYC compliance step was very frustrating. To fix the whole situation, the CEO of the company transferred over his personal utility bills and mortgage documents, photos of his driver’s license or passport, and a set of other documents related to the company.
BitPay is the world’s leading Bitcoin and Bitcoin Cash processor, allowing merchants and users to receive BTC and BCH token from all over the globe. However, the exchange was extensively criticized at Trust Pilot, which gave the exchange only a two-star rating.
One of the Trust Pilot reviews stated,
“The sole presence of this service is making everyone’s life hard. I could not pay an invoice using their own wallet copay. I don’t know if this is normal for you but to me seems incredibly stupid.”
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