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

Crypto is a fast-moving sector where new trends – decentralized finance and non-fungible tokens among them – are accelerating in an instant. And as the demand for digital assets grows, so does the need for regulation.

Anticipating these regulations and having the systems in place for future compliance can position crypto exchanges as industry leaders. Those who do the least risk falling behind as customers turn to more reliable alternatives.

However, exchanges can take a significant role in setting the regulatory tone by taking the initiative to go beyond compliance and better protect their users. It can help a business build a reputation for safety and deliver a compelling point of difference from the competition. More than that, 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 expand quickly into new markets. It can help them control operating costs, reduce risk and improve the customer experience.

In addition to 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, helps crypto platforms achieve their full potential in an ever-changing market.

Fast, accurate verification of digital identity can help exchanges build trust and security while rapidly expanding their customer base, the company says. Enhanced Know Your Customer (KYC) checks can help exchanges scale faster. By knowing exactly who their customers are and establishing the origin of the funds, exchanges can position themselves to adapt to future regulatory 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 like Trulioo can help exchanges stay ahead of the curve and remain compliant as they prepare for tighter regulations that may 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. 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 registries. It is also possible to authenticate new users using a selfie.

Trulioo recently acquired code-free orchestration solution HelloFlow to accelerate digital onboarding and unveiled major product updates that include document-free 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 crypto checks from KYC and Anti-Money Laundering.

This approach can help crypto companies strengthen their infrastructure to ensure they are ready when the next bullrun brings a new wave of customers to exchanges.