KYC Crypto - A Way of Securing Virtual Assets

KYC Crypto - A Way of Securing Virtual Assets
5 min read
10 December 2021

Possessing a crypto wallet these days is as common as having a regular one. Digital currency platforms are more preferred than banks for swiftly making international payments with convenience. However, some virtual exchanges are intentionally limiting the potential services without offering KYC crypto that can be provided to traders all over the globe. The preference for time over safety by cryptocurrency platforms might give a boost in customer onboarding for a short period of time but sooner or later those same traders will realize their mistake.

KYC crypto in virtual exchanges offers an additional layer of safety for the platform from imposters. The service portfolio provides digital screening technologies that can confirm the investor in seconds with zero friction. Multiple confirmation checks are conducted by the automated solution for swift and reliable onboarding.

Working Mechanism of Client KYC Verification

The process of validating an investor is sub-categorized into small parts, The concerned currency platform firstly conducts identity document verification.

  • The trader uploads images of national ID records, present in a clear and intact position, also a fresh selfie for biometric screening

  • The OCR engine in KYC crypto collects information from data fields of documents. The selected data then is confirmed from the global regulatory register

  • The final results get received by the exchange in seconds

In the entire process, along with identity, address, facial data, and other necessary information are also confirmed in a go. 

BitMart Incident

This particular cryptocurrency exchange is ranked as the 118th largest digital currency platform, which has recently been hit by a substantial loss of $196 million due to the absence of effective KYC crypto. The compliance program failed to prevent such a massive financial disaster. 

 The figure was initially considered to be around $150 million. However, this fresh incident highlights the significance of a program of KYC crypto to ensure that the platform follows the data protection regulations and protocols. The mystery of how it got carried out is still unresolved. The cryptocurrency providers have to realize that the same technologies that enhance the functions of the platform also become the main source of threat. The service providers reduce the level of threat to the minimum level. The AML screening service practised in KYC crypto on the regular basis surveils such enormous funds transfer activities.

Video Interview of Clients

The procedure of KYC service providers also includes an arrangement of a video meeting between the prospect trader and the verification agent. The call consists of the validation of the party by an AI-driven authentication system that verifies the identity documents once more. Along with that in KYC crypto, the agent conducts a small session, a couple of questions are asked, during that the digital screening system confirms the 

  • Liveliness of Client

  • Expression Analysis

  • Spoof Checks

  • Facial Geometry

In the KYC process, the global SaaS IDV provider also offers customized services and plans to the cryptocurrency exchange client. The video verification can take place in different working models. The concerned platform can either choose a regional KYC expert or an AI-based video conference that can also deliver accurate output. The option of an In-house KYC expert is always open for more transparent and reliable results.

How does a global IDV provider prevent crypto-related scams?

There are countless sophisticated measures that assist fraudsters. For instance:

In phone porting, an imposter can collect credentials of an already crypto trader, and then transferring the number on the other device is not much of a job for them. Afterward, the account holder can’t resume investing or any other operation because the two-step verification won’t work on the number

This has been done quite a few times, false ICOs (Initial Coin Offering) by a scam group. The scam can be continued from one party to another. The scammers can provide funds to a particular trader by acquiring investment from another, without being exposed for a very long time

Ultimate Solution 

  • The institutions that are responsible for the approval of new coins, with a systematic verification program can perform absolute AI-powered authentication with help of a global IDV provider. Similarly, the solution for KYC crypto is also essential for the concerned currency exchange who can validate the same checks

  • The authentication checks are performed with a strongly bonded matrix of thousands of artificial intelligence models and with a deep learning algorithm embedded in a solution for KYC crypto. The system can recognize false documents and the consistent monitoring of transactions and absolute confirmation at every attempt restricts the error margin


All of these validation checks are conducted with AI-powered digital solutions which guarantee maximum protection. Due to the lack of a systematic framework in online kyc verification by virtual currency exchanges, many platforms have had their fair share of trouble with regulatory authorities and their investors as well. The greediness of exchanges for maximum traders onboard is destined to result in going down. KYC crypto might take some time but it’s all worth it.

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Junaid Tariq 12
Technical Content Writer and Contributor Writer
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