Crypto is a fast-moving sector where new trends — decentralized finance and non-perishable tokens in between — are accelerating in the blink of an eye. And as the demand for digital assets grows, so does the need for regulation.
Anticipating these regulations and owning the systems in place for future compliance can position cryptocurrency exchanges as leaders in the industry. Those who do minimal risk are being left behind as customers turn to more reliable options.
Despite this, exchanges can play a substantial role in setting the regulatory tone by taking the initiative to bypass compliance and better protect their users. This can help the company build a reputation for security and provide a compelling point of difference from the competition. More than that, it can show regulators how policies can work in practice.
Prioritizing adaptable and forward-looking solutions can facilitate the rapid expansion of exchanges into new markets. It can help them control operating costs, reduce risk, and enhance customer experience.
In addition to helping cryptocurrency exchanges achieve compliance, identity verification technology drawn from hundreds of global data sources can accelerate their onboarding process, providing the right balance between security and friction. Collaborative clients on board can quickly and securely give exchanges the competitive edge they need in a market that is getting more crowded with every trade of the crypto revolution.
Trulioo, the identity verification service that gets exchanges worldwide to customers on board quickly and securely, helps crypto platforms realize their full potential in an ever-changing market.
The company says that fast and accurate digital identity verification can help exchanges build trust and security while rapidly expanding their customer base. Improved Know Your Customer (KYC) checks can help exchanges scale more quickly. By knowing exactly what their customers are and where the funds come from, 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 see 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 stay in compliance while preparing for tougher regulations that may be on the horizon.”
How does Enhanced Know Your Customer work?
Traditional KYC procedures can limit the number of people an exchange can verify, especially if it requires a passport, driver’s license, or bank account. By contrast, Trulioo provides 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 with the help of a selfie.
Trulioo recently acquired a HelloFlow tokenless orchestration solution to speed up digital onboarding and unveiled major product updates that include document-free proof of address verification. In another significant development, company executives said they have achieved unicorn status following 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 cryptocurrency checks for KYC and Anti-Money Laundering.
This approach can help crypto companies strengthen their infrastructure to ensure they are ready when the next bull run brings a new wave of customers to the exchange.