The United Kingdom Post Office recently announced that it will begin selling cryptocurrency through its EasyID identity verification app.
The EasyID app, which was released on August 23, now has a user base of 10 million. EasyID was created in collaboration with Yoti, a global digital identity platform. EasyID users can use the crypto purchasing option to gain access to Swarm Markets, a unified crypto exchange. Swarm Markets is the first licensed and financial market-compliant DeFi protocol in the world.
“Access to products and services is increasingly moving online, and we’ve responded to this shift by launching our free-to-use app, Post Office EasyID, which enables people to build their own secure digital identity on their smartphone and easily control and prove who they are to whichever business they want to interact with,” a Post Office spokesperson explained.
Verified EasyID users can access Swarm Market’s website and purchase crypto “vouchers” directly from their mobile phones. These vouchers are then allegedly redeemable for cryptocurrencies and tokens. According to the report, the Post Office will not receive any commission on voucher sales because their partnership with Swarm Markets is limited to the use of EasyID as the identity verification software.
“By making it simple and secure to buy real Bitcoin and Ethereum, more people now have the option to get started in cryptocurrency,” said Philipp Pieper, co-founder of Swarm Markets.
Swarm Markets is a Berlin-based exchange regulated by the German financial regulatory agency, BaFin (Federal Financial Supervisory Authority). Trading, an automated market maker (AMM), storage, lending, and yield farming are built into the platform’s operational stack, as are the usual features of a decentralized finance protocol. The AMM smart contracts of Swarm Markets are forked from the Balancer Protocol, with permission layer changes for compatibility with its Swarm Passports feature, as well as whitelisted assets.
When people buy cryptocurrencies, they should be sold with a clear wealth warning: you may get back much less than you paid for them. It’s one thing to buy cryptocurrency online through an investment platform because that’s what the audience expects, but you don’t associate this with the Post Office.” Warren Shute, a chartered financial planner, agreed.
Many people were surprised by the Post Office’s collaboration with a crypto exchange, given that the current volatility of the crypto market has resulted in severe risk warnings against investing in crypto assets from the United Kingdom’s regulatory agency, the Financial Conduct Authority.