Cryptocurrency’s popularity continues to rise, drawing more hackers looking for vulnerabilities to exploit in its security framework. Criminals are using crypto as payment for ransomware attacks or buying drugs on darknet marketplaces – this increased activity requires cryptocurrency exchanges to have robust identity verification tools in place in order to detect fraudulent actors and keep them out.

Traditional financial institutions invest a substantial amount of time and money in identifying their users to comply with KYC/AML (anti-money laundering/countering terrorist financing) regulations. As crypto becomes more mainstream, exchanges must also follow suit so as to not fall out of compliance and risk fines or sanctions from regulators; yet some are struggling with finding an optimal balance between stronger identity verification needs and providing customers with an enjoyable user experience.

While some requirements are technical in nature, others rely more heavily on human considerations. Exchanges typically request users upload a photo of themselves or sign their name to verify their identity when opening new accounts or engaging in high-value trades, to help protect against fraud and identity theft. While this does provide some protection against such acts as identity theft or social engineering involving fake ID documents from social media or the dark web that are easily falsified – not to mention these techniques require significant human input which often delay transaction processes significantly.

Biometric face verification offers an ideal way to both verify identities while providing the seamless user experience that modern customers demand. To do this, companies can turn to leading solutions like iProov’s Genuine Presence Assurance which uses cutting-edge facial recognition software that detects and authenticates people on any device regardless of cognitive ability or age – something no traditional biometric face verification solution could do.

iProov’s technology is already helping crypto companies strengthen their relationships with customers while remaining compliant with KYC/AML regulations, thus preventing fraudsters from accessing their systems. This balance is especially vital given the growing fear among individuals about having their personal data sold or compromised online when transacting business.

Building trust within the cryptocurrency sector and encouraging more consumers to buy and transfer cryptocurrency purchases or transfers is essential to its growth and future viability. For more information on how iProov can reduce risks while improving customer experiences contact us here.