BitPay KYC/AML for $150k transaction

[btcuserr1]

Scenario: Both parties are based in the U.S. I (buyer) offered to pay for the products (brand new laptops in bulk) via Bitcoin and the seller agreed. I thought I'd be sending directly to his wallet, however he stated that he'll be using BitPay to accept and convert to fiat. He is in the process of enrolling with BitPay at the moment. He stated that they'll also need things from my end as well, so here comes my question. What am I expected to be asked to provide?

I read that BitPay recently implemented a new protocol that will require KYC for purchases over $3k. According to their website, they'll be requiring me to scan front and back of my ID (service through Onfido) as well as supply a video/picture of my face next to my ID. I couldn't find anymore details of any subsequent hoops that I may still need to go through. Any idea of the next step in the process for me? and how long is the process in total until the transaction is confirmed?

Given what I've read on this forum about BitPay, is there a high risk of BitPay freezing my funds and asking me to supply them with everything finance-related about my life (i.e bank statements, docs proving source of funds, etc) ? I'm not willing to take a risk of this dragging on for weeks or months, hence my concern.

All answers (particularly from people who've gone through BitPay's KYC for purchases over $3k) are welcome.

Thanks.

[OmegaStarScream]

I wouldn't suggest doing this. Your payment will certainly not go through (because of the large amount) without being forced to prove the source of income and residence. Just suggest sending the funds to the seller directly. He could later use an exchange to convert the funds to fiat.

If you still decide to go through this, you can make the process by faster by verifying your account now. Just make a personal account, go to your dashboard and submit your documents so when you're given an invoice, you just log in to your BitPay account and send the payment. But as I said above, expect to provide more info and writing back and forth with the support after sending the payment.

[Coyster]

Is the transaction worth $150k as you wrote in the title of your thread, if that's the amount involved in the transaction then you'll have to provide documents for KYC verification. If you do not want to do this, then you can suggest using an escrow service and sending straight into the sellers btc wallet

Just to avoid any mix up and elongated issues in this transaction, you need to make up your mind on what you think will be safer and easier for you, you can also forego the transaction if the seller insists on this sending process, or you can change the means of payment from bitcoin to fiat since you said you both are based in the US.

[exstasie]

I read that BitPay recently implemented a new protocol that will require KYC for purchases over $3k. According to their website, they'll be requiring me to scan front and back of my ID (service through Onfido) as well as supply a video/picture of my face next to my ID.

Given what I've read on this forum about BitPay, is there a high risk of BitPay freezing my funds and asking me to supply them with everything finance-related about my life (i.e bank statements, docs proving source of funds, etc) ? I'm not willing to take a risk of this dragging on for weeks or months, hence my concern.

There isn't much info out there yet since Bitpay's KYC procedure is so new. I would urge caution. They definitely have internal controls (hard to know what they are exactly) and they have blocked 6-figure payments before.

Onfido is also a really shitty company. They are incompetent and they don't comply with GDPR erasure requests: https://www.trustpilot.com/review/onfido.com

If at all possible, try to get the counterparty to liquidate through an exchange without involving you. There are several things that could go wrong here, and no good reason (from your perspective) to use Bitpay as an intermediary.

[btcuserr1]

Thank you all your responses. It appears that you're all warning me to NOT go through with the proposal to have BitPay process this payment. As a result, I'm going to suggest sending the payment direct and the buyer can subsequently sell and withdraw.

Which US exchange provides the quickest on boarding process that includes creating an account, verifying, adding US bank account AND requesting a withdrawal limit increase to $150k? How long is this whole process likely to take on the quickest exchange?

Thanks again.

[rijaljun]

-snip-

Can't both of you just meet and trade there? That would be safer than online trade and the additional cost needed for the meet will replace the risk you are going to take by giving out your personal identity to an exchange. But in case you want to trade on exchange, try to check Kraken. AFAIK, you can increase your withdrawal limit even to 10M daily there

[exstasie]

Thank you all your responses. It appears that you're all warning me to NOT go through with the proposal to have BitPay process this payment. As a result, I'm going to suggest sending the payment direct and the buyer can subsequently sell and withdraw.

Which US exchange provides the quickest on boarding process that includes creating an account, verifying, adding US bank account AND requesting a withdrawal limit increase to $150k? How long is this whole process likely to take on the quickest exchange?

Thanks again.

Trading a block of that size might justify using a reputable OTC trading desk. I would recommend itBit or Kraken. In general, if he wants to immediately withdraw a sum that large, he will need the highest level of verification on any exchange. He should be prepared to verify ID, proof of residence, SSN and selfie (if located in the US), and probably a KYC questionnaire about occupation/source of funds.

Coinbase Pro has enough liquidity to dump 16-17 BTC easily enough, but they saddle new users with a $10,000/day withdrawal limit. They will automatically increase it to $50,000/day after regular usage and they can also manually increase your limits upon request, but I've heard of people having problems getting their limits increased: https://www.reddit.com/r/CoinBase/comments/7psxpa/over_usd_500000_stuck_on_coinbase_withdrawal/

[ReiMomo]

I used to work from a company that will require KYC with $5k and up transactions. I never have seen people having problems with their transactions when they were able to provide the information needed.

In your case, since you have that amount of cash you might be working with higher compensation or you have an asset or any financial statements that would prove. You shouldn't be scared to send your payment to the seller if you are complete with the requirements they might ask. I guess, the best option for you is to hire an escrow and send it indirectly to the seller. The seller is more eligible since he's doing his business when he had this transaction.