Improved KYC checks could be a win-win for crypto exchanges and consumers – here’s why

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Crypto is a rapidly changing industry where new trends – decentralized finance and non-replaceable tokens – are accelerating in the blink of an eye. And as the demand for digital assets grows, so does the need for regulation.

By anticipating those regulations and having the systems in place for future compliance, crypto exchanges can be positioned as industry leaders. Those who run the bare minimum risk falling behind as customers turn to more trusted options.

However, exchanges can play a substantial role in setting the regulatory tone by taking the initiative to go beyond compliance and better protect their users. That can help a company build a reputation for security and make a compelling difference from the competition. In addition, it can show regulators how policy can work in practice.

The business case

Prioritizing adaptable, future-proof solutions can make it easier for exchanges to quickly expand into new markets. It can help them control operating costs, reduce risk and improve the customer experience.

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In addition to helping crypto exchanges achieve compliance, identity verification technology that draws from hundreds of global data sources can accelerate onboarding and strike the right balance between security and friction. Customers who onboard quickly and securely can give exchanges the competitive edge they need in a market that is getting busier with each crypto bull run.

Trulioo, an identity verification service that enables exchanges worldwide to quickly and securely onboard customers, helps crypto platforms reach their full potential in a constantly changing market.

Fast, accurate digital identity verification can help exchanges build trust and security while rapidly expanding their customer base, the company says. Improved KYC (Know Your Customer) checks can help exchanges scale faster. By knowing exactly who their customers are and identifying the origin of funds, exchanges can position themselves to adapt to future regulatory changes.

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“Regulation is a hot topic in the crypto space and one of the reasons we see so many crypto exchanges wanting to partner with us,” Trulioo CEO Steve Munford told TSWT. “Working with a platform like Trulioo can help exchanges stay ahead and stay compliant while preparing for stricter regulation that may be on the horizon.”

How does enhanced KYC work?

Conventional KYC measures can limit the number of people who can verify an exchange, especially if it requires a passport, driver’s license or bank account. In contrast, Trulioo offers validation in more than 195 countries and against more than 400 trusted data sources – including mobile networks, credit bureaus, banks, governments and business registers. It is also possible to authenticate new users using a selfie.

Trulioo recently acquired the no-code orchestration solution HelloFlow to accelerate digital onboarding and unveiled major product updates, including document-free proof of address verification. In another key development, business leaders said they achieved unicorn status after a $394 million Series D funding round.

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Trulioo aims to help exchanges navigate the turbulent waters of regulation now and in the future with fast, secure and accurate KYC and Anti-Money Laundering crypto checks.

That approach could help crypto firms strengthen their infrastructure to ensure they are ready when the next bull run brings a new wave of customers to exchanges.

indemnification. TSWT does not endorse any content or product on this page. While we strive to provide you with all the important information we may obtain, readers should do their own research before taking any action regarding the Company and taking full responsibility for their decisions, nor should this article be considered investment advice.

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