Identity verification solutions for Fintech
Cryptocurrency has been around for more than a decade. It has grown from a digital currency known only to a small number of geeks into an industry worth billions of dollars.
From a technological point of view, over the past 10 years we have gone from iPhone 4 to iPhone 11, from a digital password to a facial recognition system, from traditional banks to full-fledged digital ones.
This means that progress cannot be stopped, and technologies must either develop or die. The same can be said about cryptocurrency. If we want to see the mass use and official recognition of cryptocurrencies, we must accept that all companies associated with them will not achieve any significant results without KYC and AML.
Identity verification solutions for kyc fintech
A lot of ardent crypto enthusiasts at this place will rise from their seats with an angry tirade about the original vision of cryptocurrency as anonymous, unregulated money. We will not argue with this vision, because all major innovations in finance, music and even fashion at some stage of their development rebelled against the existing order. But this rebellion means a limited circle of supporters, which contradicts the idea of widespread use. Most people will prefer security and stability when it comes to finances. And KYC is one of the most important steps to the security of your funds.
So how does an ordinary crypto exchange user benefit from KYC?
If you use your bank card to purchase cryptocurrencies, KYC tools verify that the card is being used by the rightful owner. That is why these protections are called Know Your Client — “know your client". It's no secret that there is a huge black market where stolen card data is sold in large volumes. For an experienced criminal, it will not be a problem to crack the three-digit card code. Thus, comparing the full name of the cardholder with a state—confirmed document and the corresponding photo is a measure of protection against the illegal use of lost, stolen or simply compromised data of your card. That is why we have set a time limit for the withdrawal of cryptocurrencies (72 hours). If the card is stolen and used by fraudsters, 72 hours is usually enough for a real user to call the bank and protest the transaction.