Crypto KYC Solutions Advance to Ensure Adoption and Better User Experience
Know-your-customer (KYC) measures are becoming more important as the cryptocurrency sector grows. These models have proven to help digital asset service providers prevent against crimes such as money laundering, terrorist financing and more.
Yet while KYC processes can help financial firms better understand who their customers are, many KYC models remain time-consuming and challenging. A recent blog post from UXCam – a mobile app analytics platform – found that users often abandon sign up processes associated with fintech apps due to the complexity, time and documentation required to get started.
The same may also apply to the cryptocurrency sector. Caitlin Barnett, director of regulation and compliance at Chainalysis – a blockchain data analytics firm – told Cryptonews that crypto businesses are facing many similar challenges that traditional financial institutions face when conducting KYC. “It can be a very manual process and oftentimes customers are reluctant to provide information being requested,” she said.
Barnett added that the majority of crypto companies conducting KYC today are regulated entities and therefore the KYC process can somewhat resemble traditional financial institutions. “More and more regulators are requiring that these regulated entities collect the same personal identification information – such as name, address, date of birth, government issued ID – as traditional financial institutions,” said Barnett.
It's generally handled by Plaid.
If for whatever reason you've been flagged by OFAC or FinCen as high risk, you'll be denied services.
10+ years in OTC, 3 years as a registered fincen broker dealer.
— Mark Rizzn Hopkins (
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