Enhancing security in the cryptocurrency world with KYC verification

Enhancing security in the cryptocurrency world with KYC verification

Almost 20 years after the legislation on combating money laundering, regulators around the world are working to create global standards for the Know Your Customer (KYC) rule. These standards are applied now, in particular, to the financial and technological sectors and cryptocurrencies. The technology sector, which began with idealized anonymous peer-to-peer payments, now takes into account the security of traditional finance, which means compliance with KYC regulations.

Even though technology in some aspects has stepped far forward, the attitude of cryptocurrency to KYC was sometimes dismissive, and in some cases criminally negligent. The attitude is changing, but the debate over how the KYC rules and cryptocurrency interact is only flaring up.

What is Know Your Customer verification?

Due to the digitization of the international financial system and the increasingly stringent regulation of the industry, regulatory compliance is on the rise. What used to be a secondary area that occasionally caused a headache for investment bankers and traders is now becoming an important centre for big data processing.

KYC is the process of checking who your customers are, either they are who they claim to be or someone else. In the period from 2000 to 2010 in most jurisdictions: in the USA and Canada, in most European countries, South Africa, Russia, India, Singapore, South Korea, China, and Japan legislation was passed for KYC and AML regulation (anti-money laundering laws). As a result, banks and related financial institutions began to comply with the requirements of anti-money laundering legislation.

Cryptocurrency exchanges are currently considering fiat ramps as the main component of their product. Such changes have led to dependence on banks and payment systems, requiring the same level of compliance that they adhere to.

For almost all organizations involved in payments, KYC rules are designed to prevent criminal activities such as fraud, money laundering, terrorist financing, the use of stolen funds, bribery, corruption, and other suspicious financial transactions. Today, most of the KYC rules are associated with strict regulatory compliance, often in the name of protecting consumer rights. But ultimately it is a risk management process.

Often, large companies themselves manage their own KYC rules, this is done by the staff. Small companies, by contrast, outsource verification processes to third parties. Regardless of who is involved in KYC, the process usually does not change. Clients must send identification documents: address, bank statements, and sometimes explain the source of their funds.

Keeping confidential documents is as important as using them. In the pre-cloudy era, banks had to duplicate documents to insure themselves against the loss of a document. Files were copied and stored on various unrelated servers.

Thanks to Amazon and other cloud storage providers, institutions and third-party verification providers now encrypt AES-256 KYC guidelines and securely store them on cloud servers like Amazon S3.

KYC in cryptocurrency

In the early years of Bitcoin and the first cryptocurrency exchanges, the KYC rule was practically not known. Users could make transactions without revealing their identity, often without even creating an account.

Now, most major exchanges and crypto-financial services providers are facing pressure from government agencies and have taken appropriate measures to implement the KYC principles. Users expressed their dissatisfaction, but they are already faced with these processes and accept them in their daily lives. Cryptocurrency is still regarded as an anarchist financial instrument within its community. And yet, when it comes to shareholders, business needs to play by the rules to attract investment and achieve faster growth. 

Despite the work being done to eradicate illegal or unethical behaviour and legitimize the industry, more than two-thirds of cryptocurrency exchanges last year still did not adopt sufficient and adequate KYC principles. 

Those who continue to work without applying the KYC rule will be constantly at risk, and most likely they will have to work in obscure or secret jurisdictions that protect themselves from lawsuits. This approach is unlikely to fill users with confidence. Ultimately, they will gain access to “dark money” and a small number of law-abiding, privacy-conscious consumers. As a result of this, the expansion of the exchange will become virtually impossible.

Decentralized Exchanges (DEX) was once seen as the next wave of cryptocurrency exchanges. It is understood that anonymous peer-to-peer trading can solve many problems with centralized exchanges, including the need for KYC rules. Large exchanges have already implemented their versions of DEX, but they have selectively chosen the advantages of decentralization: lower infrastructure costs increased security and user-controlled tools. 

Cryptocurrency is a world-class game. If you want to conquer new markets, you must demonstrate achievements in the field of corporate responsibility. Selective disintegration is the best answer to this challenge. Finding a suitable provider that can ensure uninterrupted operation with minimal cost and guarantee data security is the real challenge that the industry is facing.

The future of KYC

We are currently witnessing the advent of RegTech 3.0, a regulatory technology that digitizes a wide range of regulatory compliance processes. RegTech technology is designed to reduce costs, improve consumer protection and identify risks long before regulatory authorities intervene. This technology uses a combination of new technologies, such as artificial intelligence, machine learning, RPA (robotic automation of technological processes and production) and biometrics, but at the same time signals significant changes in the strategic direction. Instead of an isolated review of consumers and their behaviour, regulatory compliance is now seen as a valuable source of data.

Self-governing identity is another concept actively explored by researchers in the blockchain world who are looking for an alternative to centralized identity on the Internet, where verifiers, not verified ones, are under control.

But for the time being, machine learning and biometrics are considered as the potential technologies to enhance online security and verify the identity of customers. With tangible results in the form of customer satisfaction and data security, investment in better technologies is recognised as a key to an efficient financial ecosystem. By using artificial intelligence for real-time and swift KYC verification, the crypto industry can get a real push. 

KYC in blockchain with a focus on data protection and AML laws

Supplementing blockchain with KYC offers endless possibilities

While you may be tempted to think that decentralized and anonymous blockchains are safe because they are free of control from a single authority and work transparently, the reality, however, is a bit different, they are constant targets of scams. Even though the encryption makes it difficult to hack a blockchain system, its anonymity makes it a haven for criminals. Bitcoins and other cryptocurrencies based on blockchain are used by the criminals for illicit money transfers.  

Blockchain technology based on a distributed ledger system has great potential and is increasingly being adopted in different industries. However, there are some challenges and concerns over the design and implementation of distributed ledger systems. One of the major concerns over the decentralized ledger system is data integrity and data protection. As recent developments in data privacy and protection laws proffer the user an authority on their data, the businesses are answerable to the user on how or where the data is being used. 

Realizing this, technologists and researchers are coming up with new technologies that can help embed blockchain-based businesses into the existing legal framework for data protection, customer due diligence, and Anti-Money Laundering (AML). Artificial Intelligence-based due diligence solutions are considered the best bet for this purpose but before discussing it let’s look at how blockchain works.

Blockchain and Distributed Ledger systems  

In a nutshell, a blockchain is a form of distributed ledger system representing a digital data structure in which records are organized in cryptographically sealed blocks. These blocks are time-stamped, replicated, and synchronized. Distributed over peer to peer networks they are often maintained by consensus algorithms. Blockchain technology is also referred to as a status transition machine where the specific token is assigned a status using cryptographic values within a blockchain.

Data Protection and Blockchain

Blockchains are designed with a high level of transparency to ensure trust in the system. However, this transparency also makes it challenging to comply with data regulation and protection regulations such as GDPR and AMLD5. BLockchains transparency is considered incompatible with data protection regulation because it is pseudonymous, not anonymous. A person is represented in the blockchain system with a public key created with cryptographic values. GDPR, on the other hand, defines it as personally identifiable information (PII). And once the data is written on the blockchain it is impossible to alter or delete that data. 

Moreover, the dualistic categorisation of data processors into controllers and processors by the GDPR raises issues such as no controller in the blockchain. Therefore many of the rights individuals are granted towards a controller cannot be addressed, as blockchain technology is not controlled by any centralized entity. These tensions between data protection regulations and blockchain in many challenges like unknown provider, alien jurisdiction, conflict of laws and many more.

Integrating Automated KYC verification solutions with blockchain


However, blockchain can guarantee more data privacy as well as data security, if the personal data is kept off the blockchain and only the key to transactional data is transformed into the blockchain. Data protection is crucial when using a distributed ledger system. To keep the system secure from hackers and bad actors, the personal information could be verified by performing customer due diligence for every entity entering the blockchain system, this way the consumers will be verified easily without entering their data on the blockchain.

The problem that constitutes here is that the time required for manual KYC verification contributes to rigid customer experiences and the errors that could lead to fatal losses. Nevertheless, employing an automated KYC verification solution could solve this problem easily.

Blockchain and Anti Money Laundering

Another major consideration in blockchain technology is security for users and businesses in general. Unfortunately, in almost any sort of blockchain both public and private, including cryptocurrencies, token networks, or Initial Coin Offerings (ICO) related blockchains, the security is watertight on one end and the other if a successful hack or phishing attack is successful it is not traceable.

The anonymity of blockchain means that the stolen data remains visible but untouchable. 

With such a possibility, in an unregulated space succumbing to massive speculation, regulators around the world are formulating protocols to govern everyone’s best interests in the blockchain era.

AML and KYC regulations around the wold have wider implications than the cryptocurrencies alone, but the main display of their implementation happens in the digital world. Applied to blockchain technology, AML implies KYC processes and, at times, conducting due diligence on the origin of the assets by tracing transactions or asking the bringer of the funds to prove the source of income. However, there lie challenges in (i) the early implementation of KYC/AML standards and (ii) the ability to understand the technology underlying the Blockchain to be able to identify the origin of the assets. When implementing a blockchain-based business, a company should work with KYC/AML tools even when raising private funds.

To enhance the KYC verification process companies can utilise AI-based verification tools that could be integrated into the registration process on a website, into which customers enter their basic personal information. Online fraud management and AML scanning tools can undertake background checks and document whether a source of funds seems plausible.

Harnessing blockchain 

Understanding Blockchain enables comprehension of its potential challenges and risks. It is important to understand the tools at hand before initiating or evaluating a Blockchain-based project. Supplementing blockchain with KYC verification has many possibilities and can help to fight against data theft, identity fraud, money laundering, and other illicit crimes that could be conducted by negatively exploiting blockchain technology. 

Boatigo joins hands with Shufti Pro

Boatigo joins hands with Shufti Pro to develop a Secure Online platform for the Boating Community

London, UK – (February 2020) Shufti Pro will provide ID verification and liveness detection services to Boatigo Pty Ltd. It will help Boatigo deliver a secure environment to its online community of captains and passengers. 

Boatigo is reshaping the boating experience by bringing boat owners and boat passengers on a unique platform. It allows the captains to register their boat on its platform and crew the ability to secure seats online. Since fraudsters are everywhere, becoming an intermediary required taking concrete steps for the security of passengers using Boatigo to get out on the water. 

The problem was they wanted to practice high-security standards on their platform while maintaining efficiency. Shufti Pro helped them perform swift, real-time verifications on boat captains and crew before allowing them to list vessels or secure seats. Shufti Pro provides swift verifications at economic prices with high efficiency. It helped Boatigo save time, effort, and money. 

Identity verification services of Shufti Pro delivered with 98.67% accuracy will provide a global risk cover to Boatigo. It’ll be able to screen captains and crew registering on their website. It will ensure the safety of passengers using Boatigo to find seats on boats. Boatigo is taking a bold step by connecting the stakeholders in the boating industry. So, security is vital to gain success and onboard a trusted clientele. 

Developing an in-house solution is quite expensive and manual verification doesn’t go well with their business model. So they took a wise decision and joined hands with Shufti Pro to share their due diligence burden. Shufti Pro will verify the government-issued ID card for them along with liveness detection, helping Boatigo gain useful insights about their customers. 

Talking about this collaboration, Joel Keane, CEO of Boatigo, said;

“Boatigo is very different from most other peer-to-peer services because the captain and crew interact on the same trip out on the water in a boat. Our initial community discussions highlighted a concern around community member authenticity.  Shufti Pro allows us to securely verify our community member identities by means of a government-issued ID and a liveness check. This gives both Boatigo and our community members peace of mind that people on the platform are who they say they are. Furthermore, Shufti Pro completely automates this process for us, which saves valuable time and development costs.”

Shufti Pro is also excited to start this partnership with Boatigo. Victor Fredung, CEO Shufti Pro said,

“We have our pride in providing global services to businesses with diverse business models, and Boatigo is an unusual business. Our solutions fit well in different roles, either for obligatory customer screening or fraud prevention. We look forward to maintaining a long-term relationship with Boatigo.” 

Shufti Pro is one of the pioneers in the industry for verifying people in more than 232 countries and on-boarding unique businesses from different corners of the world. It believes transparency in B2C and B2B relationships is a key to long term relations. So, it provides economical prices to help businesses grow in a fraud-free environment. It is the vision of the company to play a significant role in the development of fraud-free cyberspace.

About Boatigo 

Boatigo is a tech company that has developed a marketplace to bring boat owners and users together to limit the wasted seats on recreational boats. The platform is designed to help owners list their spare sets and for the general public to secure the additional seats on these boats.  Boating is expensive, and every day there are a large number of recreational vessels out on the water with spare seats. Boatigo is bridging the gap between recreational boat owners and users, bringing them together in a secure community built on trust that allows boats to be used more efficiently.

About Shufti Pro 

Shufti Pro is an identity verification service provider that offers KYC and AML solutions to worldwide clients. Using a hybrid approach of AI and HI technology, Shufti Pro delivers results within 30 seconds with accuracy as high as 98.67%. Having verified users in over 230 countries and territories, Shufti Pro is a pioneer in IDV services to cover a large number of countries.

Contact sales@shuftipro.com to get on board.

Shufti Pro partners with KuBitX to help them onboard a secure clientele

Shufti Pro partners with KuBitX to help them onboard a Secure Clientele

London, UK – (February 2020) Shufti Pro will now verify the customers of the blockchain-based digital asset marketplace – KuBitX to help them onboard a secure clientele from within Africa and around the globe. 

Shufti Pro’s KYC services are designed while keeping in view different business models. KYC solution of Shufti Pro powered by Artificial Intelligence can verify people from around the globe in real-time and delivers highly accurate results within 30 seconds. Shufti Pro is the perfect answer when businesses are looking for an economical solution, competitive services, and a highly co-operative team. Shufti Pro’s solutions can be integrated easily with any business platform with seamless API integration. KuBitX is a block-chain based company and it was looking for all these qualities in its potential partner. 

KuBitX is a digital asset marketplace that offers a wallet for the global clientele to perform complex financial operations in a simple manner. KuBitX delivers an advanced yet simple trading platform for digital asset trading.  Easy to use digital asset exchange not only exposes global projects to Africa but also exposes African projects to the globe. Other than that, it also provides KBX Wallet – payments, remittance, and OTC Wallet that uses stable coins to facilitate the near-instant transfer of value across the globe. Users can leverage any of their digital assets in the app to pay bills from over 3000 merchants at the moment. It’s a huge project that includes a lot of people, which is why transparency is important. 

KuBitX has initiated a unique platform for the global community, so taking some concrete steps to prevent fraud and financial crime is essential. Customers are a dear asset for any company but developing a transparent relationship with them ensures longer connections and growth. KuBitx chose Shufti Pro’s KYC screening solution to verify its global clientele. Shufti Pro has proved it time and again that its solutions are designed to keep pace with the next generation businesses and onboarding KuBitX proved its stance. 

Shufti Pro’s solution will be used to verify their customers both for their trading platform or the KBX wallet for online transfers. Talking about this partnership, Victor Olorunfemi, VP, Products and Technology, KuBitX said;

“ShuftiPro is not just another KYC AML provider, they are a business that takes their customers seriously and is very responsive when it comes to providing support. They have a wide range of international KYC tools as well as the flexibility to cater to the peculiar requirements in some countries. Integration of their tools are seamless and they carry out continuous improvements, sometimes in response to customer feedback. As long as they keep up this level of quality or even step it up some more, I will recommend their services.”

Shufti Pro is excited to onboard KuBitX and its CEO, Victor Fredung said;

“Shufti Pro is excited to onboard KuBitX. We aim to maintain this partnership for a longer period by providing them our best services. Our support team is available 24/7 considering the diverse clientele that we serve.”

Shufti Pro is all set to expand its client base with the addition of KuBitX in it. The company has taken another step towards its vision to make cyberspaces fraud-free.

About KuBitX 

KuBitX is a blockchain technology company creating easy to use solutions to enhance financial inclusion in emerging markets starting with Africa. Currently, it has two products, one is KBX Wallet – a Payments, Remittance, and OTC Wallet that uses Stable Coins to facilitate near-instant transfer of value across the globe. And the other is KuBitX Exchange – an easy to use digital asset exchange that not only exposes global projects to Africa but also exposes African projects to the globe. Its app is available on Google PlayStore and will soon be available on the Apple Appstore.

About Shufti Pro

Shufti Pro is an identity verification service provider that offers KYC and AML solutions to worldwide clients. Using a hybrid approach of AI and HI technology, Shufti Pro delivers results within 30 seconds with accuracy as high as 98.67%. Having verified users in over 232 countries, Shufti Pro is a pioneer in IDV services to cover a large number of countries.

Contact sales@shuftipro.com to get on board.

Shufti Pro Receives 2019 Great User Experience and Rising Star Honors as a Verification Identity Service in B2B Review Platform

Shufti Pro Receives 2019 Great User Experience and Rising Star Honors as a Verification Identity Service in B2B Review Platform

We’ve recently wrapped up another year of upholding our clients’ business integrity and security through state-of-the-art verification technology here at Shufti Pro. One of the highlights of 2019 was having been awarded two CompareCamp distinctionsthe 2019 Great User Experience and Rising Star Awards. 

CompareCamp is one of the most respected online resources of B2C and B2B review articles and comparisons. Its core goal is to provide insightful product reviews and information on various software solutions so that readers can see if it is a good fit for their business.

Shufti Pro fills possible security gaps for various businesses without plaguing them with unnecessary steps in the process of identity verification. Through features such as biometric facial recognition, human verification, and anti-spoofing techniques, we’ve made it our mission to strike a balance between precise verification and convenience—a feat that we’re glad has been recognized

We offer the quickest ID verification in real-time and don’t keep end-users waiting to get authenticated to crucial online accounts. Our multilingual OCR supports 150+ languages for users in 230+ countries and territories. 

With integration of both HI and AI within our system, we guarantee up to 98.67% precise verification. This level of accuracy and good user experience are two such software criteria that customers judge, often validated with the Rising Star of 2019 award. And we’re happy and proud to announce that Shufti Pro has garnered positive customer traction to win this distinction. 

After receiving these awards, and as we move forward into the new decade, we aim to build on our current model to provide even faster and more convenient identity verification software. 

Shufti Pro joins hands with Isiklar Coin

Isiklar Holding Partners with Shufti Pro to verify the customers of their new venture Isiklar Coin

London, UK – (17 January 2020) Shufti Pro partnered with Isiklar Holding to provide them with swift document verification for onboarding customers of their new venture Isiklar Coin.  

Isiklar Holding company has started a new venture namely, Isiklar Coin. They wanted to secure their legacy from bad actors so onboarding a legitimate clientele is crucial. Their goal is to identify each onboarding identity to make sure that no fraudulent individual is facilitated through their business or can be harmful. To deter the risks associated with bad actors, the company realized the need for identity verification against official identity documents. And Shufti Pro helped them in identifying and verifying their consumers through online document verification. 

A seamless and robust process of identity verification through documents will help the company allow only honest customer traffic to become part of their systems while ensuring a smooth customer experience. As document verification with Shufti Pro doesn’t take more than 60 seconds and the user can easily go through the verification process.    

Isiklar Holding is an innovative business that aims at achieving potential business growth by making honest customers part of their system. A clean customer base helps businesses grow at an exponential rate. The company needed a cost-effective and quick document verification service to prevent fraud the industry could be prone to. Shufti Pro provides the company with KYC screening services for customers. At the time of online registration, customers can verify their identity using several government-issued identity documents. Shufti Pro can verify more than 3000 identity documents and supports more than 150 languages performing verifications in seconds. Shufti Pro, with its seamless verification services, has made the KYC risk management process easy for Isiklar Coin. 

The company’s CEO,  D-r Nikolay Momchilov expressed his feelings after the partnership with Shufti Pro in these words:

 “Whenever our Isiklar Holding company starts a new venture, it is very important for us to find the right partners. We were faced with the dilemma of finding one to store our customers’ personal information. After a deep study of the market, we came across Shuftipro, and I can safely say that we made the right choice and are now calm about our customers’ data because they are in the hands of professionals.”

Shufti Pro is excited about collaborating with a company that holds a legacy. Talking about this collaboration, Shufti Pro’s CEO, Mr. Victor Fredung said, 

“Shufti Pro is excited to have a partnership with Isiklar Holding and looks forward to maintaining it for a long time. Shufti Pro will provide its globally acclaimed identity verification services to Isiklar Holding for proactive fraud prevention. Such collaborations help us move even closer to achieving our longterm goals” 

About Isiklar Holding

Isiklar Holding, a company with deep traditions and a long history of doing business, has decided to create Isiklar Coin (ISIKC). The coin is meant to serve the numerous suppliers and long-term partners of the ISIKC Platform. The idea of ISIKC is to implement a customer loyalty program, using the most innovative and disruptive technology available today – blockchain technology. This will allow the users of ISIKC to be part of a secure, cheap and transparent ecosystem. The private sale will start on January the 13th, 2020. 

About Shufti Pro

Shufti Pro is an identity verification service provider that offers KYC and AML solutions to worldwide clients. Using a hybrid approach of AI and HI technology, Shufti Pro delivers results within 30 seconds with accuracy as high as 98.67%. Having verified users in over 232 countries, Shufti Pro is a pioneer in IDV services to cover a large number of countries.

Contact sales@shuftipro.com to get on board!

FSA Regulated Bilderlings joins forces with Shufti Pro to accelerate the process of Secure client onboarding

FCA Regulated Bilderlings joins forces with Shufti Pro to accelerate the process of Secure Client Onboarding

London, UK – (January 2020) Shufti Pro on-boarded a banking company – Bilderlings – to help them accelerate their customer onboarding process while fulfilling the regulatory compliance and fraud-prevention needs. 

Shufti Pro is a global identity verification, KYC/KYB/AML screening service provider with customers in every country and industry. What makes it different is its swift verification service that identifies an individual within 30 seconds while maintaining a high accuracy rate of 98.67%. Recently it onboarded an innovative banking company Bilderlings that delivers next-generation banking services to businesses and individuals. 

Bilderlings is regulated by FCA so compliance is a big deal for the company. Speed of account opening is their targeted competitive edge so they needed a cutting edge technology to onboard a secure clientele in a secure manner. The company’s main services are settlement accounts and internet acquiring. Everything is online so the fraud rate is high, serving the financial needs of businesses online requires in-depth fraud proofing and screening for regulatory purposes as well. 

Fraud is everywhere and financial data of the customers is a vital asset of the company, so Bilderlings took a smart decision based on Shufti Pro’s global acclaim and choose it for swift onboarding of their clients. 

Expressing his confidence in this partnership, Dmitry Kuvshinov, Executive Officer, Bilderlings Pay said; “Bilderlings is a fintech platform, and the speed of opening a current account is one of the key factors for clients who choose our services. Partnership with Shufti Pro is very important for us because thanks to Shufti Pro technology we will be able to significantly accelerate the process of client onboarding.” 

Victor Fredung, CEO of Shufti Pro expressed his excitement towards this collaboration and said; “We are excited to onboard Bilderlings and to help them in swift onboarding of their customers. We are proud that Bilderlings chose us for the swiftness in our services which is one of our key attributes. Shufti Pro aims at maintaining this membership for a longer-term and to keep on improving our services to make sure that our customers are always content with their decision of choosing Shufti Pro.”

About Bilderlings Pay

Bilderlings is an innovative banking company for businesses and individuals. Among the main services of Bilderlings are settlement accounts and internet acquiring. Bilderlings helps businesses to open an account in one day, to customize individual financial solutions, and to automate the processes using API. Bilderlings customers range from large companies to cutting-edge startups. Bilderlings uses advanced digital banking technology for quick payments and flexible payment solutions. The company maintains the services of traditional banks and clients receive maximum attention from their private banker. Bilderlings is a British fintech platform that is regulated by the FCA and meets all the security standards of a traditional British bank.

About Shufti Pro

Shufti Pro is an identity verification service provider that offers KYC and AML solutions to worldwide clients. Using a hybrid approach of AI and HI technology, Shufti Pro delivers results within 30 seconds with accuracy as high as 98.67%. Having verified users in over 232 countries, Shufti Pro is a pioneer in IDV services to cover a large number of countries.

Contact sales@shuftipro.com to get on board!