Cryptocurrency users are resorting to thorough identity verification tools to strike a balance between greater regulatory scrutiny and pleasant user experiences. According to Christy Goldsmith Romero, a commissioner at the U.S. Commodity Futures Trading Commission, fraud and the possibility of harm have grown too large to ignore. As a result, authorities are paying attention.
KYC Regulations Are Coming, Blockchain Will No Longer Be Anonymous
What the new regulations will require and how they will be applied are still up in the air. Crypto platforms may need to manage regional verification and regulatory variations around the world while doing Know Your Customer (KYC) checks on millions of customers.
It’s essential for governments and particularly the industry to address what makes crypto so attractive to illicit finance, and that is the allure of anonymity.
Romero
What is Identity Verification? Why Do Verify in Crypto?
With several sources of PII data, official IDs, biometrics, and more, proving someone’s identification is a difficult task. When you multiply that by hundreds of nations, each with its own set of legal standards, it becomes nearly impossible for a team to manage the workload using manual procedures.
On the other hand, crypto platforms can scale effectively thanks to identity verification services. Businesses may manage risk while optimizing expenses with the help of automation and advanced AI-driven technology. In addition, identity document verification is crucial for businesses that operate in numerous international marketplaces since it can offer coverage for a variety of global populations. It is simple and secure to onboard anyone, anywhere, using face biometrics and government-issued identification.
Crypto Companies that Prioritize User Experience Win
There is a chance that adding or updating crypto platform onboarding, monitoring, and reverification processes will annoy potential loyal users. In order to draw and keep customers, cryptocurrency platforms must offer quick, straightforward onboarding. Crypto platforms that place a high priority on the user experience can gain a major edge in a field that is becoming more and more competitive.
The functionality of crypto platforms to interact with users in their native tongues is a major distinction. Therefore, the procedure for confirming identity needs to be localized. Users of mobile devices with localized text can see instructions for submitting their papers for verification in their preferred language by adjusting the language selection in the system settings of their devices.
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