Enhanced KYC checks can be a win-win for crypto exchanges and consumers — here’s why
Adopting more stringent Know Your Customer (KYC) checks can give crypto exchanges a competitive edge over those that meet minimal standards.
Crypto is a fast-moving sector where new trends — decentralized finance and nonfungible tokens among them — accelerate in the blink of an eye. And as demand for digital assets grows, the need for regulation grows too.
Anticipating those regulations and having the systems in place for future compliance can position crypto exchanges as industry leaders. Those that do the bare minimum risk falling behind as customers turn to more trusted options.
Exchanges, though, can adopt 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 business build a reputation for security and deliver a compelling point of difference from the competition. More than that, it can show regulators how policies can work in practice.
The business case
Prioritizing adaptable, futureproof solutions can make it easier for exchanges to expand quickly into new markets. It can help them control operating costs, reduce risks and enhance the customer experience.
Beyond helping crypto exchanges achieve compliance, identity verification technology that draws from hundreds of global data sources can accelerate onboarding, offering the right balance between security and friction. Onboarding customers quickly and safely can give exchanges the competitive edge they need in a market that gets more crowded with every crypto bull run.
Trulioo, an identity verification service that enables exchanges worldwide to quickly and securely onboard customers, is helping crypto platforms achieve their full potential in a constantly shifting market.
Fast, accurate digital identity verification can help exchanges build trust and safety while quickly expanding their customer base, the company says. Enhanced Know Your Customer (KYC) checks can help exchanges scale more quickly. By knowing exactly who their customers are and establishing the provenance of funds, exchanges can position themselves to adapt to future regulation changes.
“Regulation is a hot topic in the crypto space and one of the reasons we’re seeing so many crypto exchanges looking to partner with us,” Trulioo CEO Steve Munford told Cointelegraph. “Working with a platform such as Trulioo can help exchanges stay ahead of the curve and remain compliant while preparing for tighter regulations that might be on the horizon.”
How does enhanced KYC work?
Conventional KYC measures can limit the number of people an exchange can verify, especially if it requires a passport, driver’s license or bank account. By contrast, Trulioo offers validation in more than 195 countries and against more than 400 reliable data sources — including mobile networks, credit bureaus, banks, governments and business registers. It’s also possible to authenticate new users with the help of a selfie.
Trulioo recently acquired the no-code orchestration solution HelloFlow to accelerate digital onboarding and unveiled major product updates that include document-free proof of address verification. In another significant development, company executives said they achieved unicorn status after a $394 million Series D funding round.
Trulioo wants to help exchanges navigate the choppy waters of regulation now and in the future with fast, secure and accurate KYC and Anti-Money Laundering crypto checks.
That approach can help crypto businesses bolster their infrastructure to ensure they’re ready when the next bull run brings a new wave of customers to exchanges.
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