The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    us

    216.73.217.4

    KYC in Crypto Exchanges – Hitting the Nail on the Head

    KYC in Crypto Exchanges - Hitting the Nail on the Head

    A few years back, startups related to ICOs (Initial Coin Offerings) were in full swing, driving the cryptocurrency businesses and making their own set of regulations. However, it is not the same case now. The financial revolution in the form of virtual currency has introduced several challenges that require a standardized structure of rules in place. The regulatory scrutiny and evaluations resulted that anonymity in crypto businesses is the root of diverse financial crimes.  

    After the analysis of the complex crypto environment and working, regulatory bodies around the world declared that the exchanges promoting decentralized platforms are prone to several threats. The intimidating factors in crypto businesses refer to financial crimes such as money laundering, terrorist financing, crypto gambling, and other criminal activities. The reason is an open invitation for bad actors who enter legitimate systems and perform malevolent activities.

    The concern of regulatory authorities is that the crypto exchange businesses lack identity verification measures that facilitate the bad actors in the system. Therefore, due diligence measures such as Know Your Customer (KYC), Anti-money Laundering (AML), and Combatting the Financing of Terrorism (CFT) need to be ensured by crypto businesses. These measures identify the investors before allowing them to engage in the token sale. Therefore, improve the security of the account/wallet in crypto exchanges and discard illicit transactions immediately. 

    The dawn of KYC in crypto exchanges

    In no time, virtual currency exchanges have laid strong foundations globally. The digital assets providers are not regulated accordingly as per the requirements of regulatory bodies. However, the reputable crypto exchange platforms are moving ahead to prepare themselves towards the consideration of regulations that could help them filter out the bad actors that opt to participate. Gemini is a New York-based prime exchange that is fully regulated and always takes into account the regulatory compliance and their obligations. There are some other exchanges such as Coinbase, itBit, Kraken, Liquid, butFlyer, Bitstamp, OKCoin, and many others that require stringent identity verification measures that could facilitate only honest identities through crypto exchanges. 

    The need for KYC compliance emerged as a result of money laundering and terrorist financing using virtual assets and currencies. The financial regulators noticed that the consumers face financial loss in crypto exchanges and has paved the road for money launderers and other financial criminals to perform illicit transactions across the world without using their real identity. In this way, encapsulating the dirty money gets easy for money launderers in the crypto environment where they are anonymous. Therefore, regulatory scrutiny declares identity verification mandatory for crypto businesses with which investors will be verified beforehand.

    The approach of crypto exchanges towards KYC, AML & CFT compliance

    The anonymity in cryptocurrency exchanges demands identity verification as well as transaction monitoring throughout the customer lifecycle. Just like all other financial institutions, virtual currency providers need to monitor the ongoing transactions closely to enhance observance in financial systems and immediately take action against suspicious transactions. As in cryptocurrency, transactions are almost untraceable which is a loophole in this system to which most of the fraudsters take advantage. Identifying this, global and local regulatory bodies across the world came up with the regulations that could help reduce financial crimes by allowing only honest identities to participate in the system. 

    The whole KYC process is divided into the following levels:

    • The first is, Customer Acceptance Policy (CAP) in which the exchange determines documents of identity and enlist the detailed related to it.
    • In the second level, the Customer Identification Program is conducted in which the Customer Identifiable Information (PII) is collected and identity is verified against it. 
    • The collected information of the potential customer is then verified as per CAP. 
    • A risk management approach should be taken in which continuous monitoring of transactions should be done to identify if the system contains suspicious transactions.

    Risk management in Fiat-to-crypto and crypto-to-crypto exchanges

    For identity verification, the collected information is examined and verified. The information refers to the personal details of investor who opts to invest in crypto business. The identity authentication is performed that covers the KYC as well as AML procedures. In the whole process, details are identified and AML screening is performed against updated global watchlists, sanction lists, and Politically Exposed Persons (PEPs) records. These are risk assessment practices whose compliance is important for crypto businesses to deter the risk of fraud in the system.

    Crypto exchanges are divided into two main groups; fiat-to-crypto exchanges and crypto-to-crypto exchanges. In fiat-to-crypto exchanges, fiat money enters the market of cryptocurrency. These exchanges allow investors to exchange fiat currency such as dollars for the bitcoins, ether, libra or some other supported cryptocurrency. Whereas, in crypto-to-crypto exchanges, one cryptocurrency is exchanged with another one. In both these types of crypto exchanges, due diligence needs to be ensured to make sure no entity is using the crypto platform a medium to launder money, finance the act of terrorism, perform gambling or any other criminal activity. 

    Crypto regulations are going to stay

    Financial services providers including cryptocurrency exchanges are vigilant with respect to financial services they provide to the customers by ensuring a secure platform. Regulating crypto assets is under the agendas of crypto businesses. Crypto investors have faced substantial monetary loss as a result of exchange scams and hacks that ultimately plague the crypto market. With the plan of preventing the future crypto investors from loss, regulators across the world have declared KYC, AML and CFT regulations mandatory for virtual currency providers. For instance, in AMLD5 (Fifth Anti-money laundering Directive), identity verification in virtual currency businesses has declared mandatory to combat the actions of money laundering and terrorist financing. 

    Now before the next regulatory evaluation, crypto businesses have to come up with KYC identity verification strategies to ensure accountability and transparency in the digital currency system. Any discrepancy with respect to non-compliance can result in harsh fines and penalties by regulators. 

    Related Posts

    Blog, Identity & KYC

    What are the Different Types and Solutions of ID Verification?

    Customer identification is not an option for some businesses, it’s a must. Ignoring due diligence...

    What are the Different Types and Solutions of ID Verification? Explore More

    Blog

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses

    There are approximately 77 challenger banks in Europe alone, the best range amongst the other reg...

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses Explore More

    Blog

    Third-party Due Diligence – Red Flags, Regulations and 5 Ways to Enhance It

    The majority of businesses depend upon a third-party in one way or the other. Contractors, suppli...

    Third-party Due Diligence – Red Flags, Regulations and 5 Ways to Enhance It Explore More

    Blog, Identity & KYC

    Why You Need To Know Your Buyer

    Online payments are fast replacing cash transactions with the top payment companies harboring 1bi...

    Why You Need To Know Your Buyer Explore More

    Blog

    EDD in Banking: Going Beyond CDD to Establish Trust in the Digital Age

    With technological advancement, hackers are also becoming smarter to bypass verification processe...

    EDD in Banking: Going Beyond CDD to Establish Trust in the Digital Age Explore More

    Blog

    Know Your Customer – Addressing the Risks of Financial Crimes in Challenger Banks

    With emerging technologies, financial services are witnessing a digital revolution that is changi...

    Know Your Customer – Addressing the Risks of Financial Crimes in Challenger Banks Explore More

    Blog

    The Digital Black Market for Identity Data

    The collection, purchase, or trade of customer data is big business. Unless organizations and ind...

    The Digital Black Market for Identity Data Explore More

    Blog, Identity & KYC

    Online Identity Verification – Why Shufti is Perfect for Digital Authentication

    In a short period of time, Shufti has managed to make a significant mark upon the end-to-end ...

    Online Identity Verification – Why Shufti is Perfect for Digital Authentication Explore More

    Blog

    Online Marketplaces and Increasing Crimes – How Shufti KYC Solution Can Help

    With technological advancements and emerging innovations, online marketplaces have been digitized...

    Online Marketplaces and Increasing Crimes – How Shufti KYC Solution Can Help Explore More

    Blog

    The EU’s New AML Proposal, What’s in Store?

    To strengthen the EU’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) ...

    The EU’s New AML Proposal, What’s in Store? Explore More

    Blog

    European Payments Initiative Calling for IDV Solutions

    The rise in the popularity of Visa and Mastercard in Europe, both US-headquartered companies, was...

    European Payments Initiative Calling for IDV Solutions Explore More

    Blog

    EU’s AMLD5: What does it mean and how will it impact the AML regulation regimes?

    From the Panama papers, Paradise leaks and Danske Bank case to the most recent revelations about ...

    EU’s AMLD5: What does it mean and how will it impact the AML regulation regimes? Explore More

    Blog

    A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022]

    The adoption of cryptocurrency throughout the world has ignited the launch of new markets and reg...

    A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022] Explore More

    Blog

    AI face recognition for total automation

    Face recognition is everywhere but still we’re unable to say goodbye to document, maybe because w...

    AI face recognition for total automation Explore More

    Blog

    Know Your Business – What Does it Mean & How can it Protect Your Company?

    Businesses that offer their services to other businesses, instead of individual consumers, have t...

    Know Your Business – What Does it Mean & How can it Protect Your Company? Explore More

    Artificial Intelligence, Blog, Fraud Prevention

    The Role of Artificial Intelligence in the Future Of Financial Fraud Detection

    Until a few years ago Artificial Intelligence seemed like a thing from sci-fi movies. The whole c...

    The Role of Artificial Intelligence in the Future Of Financial Fraud Detection Explore More

    Blog, Fraud Prevention

    What is Loan Fraud and How to Detect it?

    Loan fraud simply means when someone uses your identity to illegally obtain a loan. The crime has...

    What is Loan Fraud and How to Detect it? Explore More

    Blog

    Blockchain and Identity Theft: Potential Challenges and how to Tackle Them

    Blockchain has become increasingly popular because of its potential to provide secure transaction...

    Blockchain and Identity Theft: Potential Challenges and how to Tackle Them Explore More

    Blog, Identity & KYC, Reg Tech

    RegTech: The Case for Financial Inclusion

    The FinTech industry has grown tremendously in recent years, introducing both scale and efficienc...

    RegTech: The Case for Financial Inclusion Explore More

    Blog

    Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening

    In November 2021, the market capacity of the cryptocurrency went over $3 trillion. With the incre...

    Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening Explore More

    Blog

    Uncovering 5 Holiday Season Scams and How to Avoid them this Year

    ‘Tis the season when the best deals of the year are attracting customers towards online shopping ...

    Uncovering 5 Holiday Season Scams and How to Avoid them this Year Explore More

    Blog

    AML Compliance – Putting an End to Money Laundering in Crypto Firms

    In the past few years, cryptocurrencies were widely adopted as an investment method by not only i...

    AML Compliance – Putting an End to Money Laundering in Crypto Firms Explore More

    Blog

    Safeguarding Telecommunication Industry with Robust ID Verification Solutions – What Shufti Offers

    Technology transformation, growing transactions and global digitisation are increasing the potent...

    Safeguarding  Telecommunication Industry with Robust ID Verification Solutions – What Shufti Offers Explore More

    Blog

    Impact of California Consumer Privacy Act on Online Businesses

    California consumer privacy act has been revolutionizing consumer data regulations. The act was p...

    Impact of California Consumer Privacy Act on Online Businesses Explore More

    Blog

    The State of KYC/AML Compliance in Commonwealth of Independent States (CIS) Region

    Commonwealth of Independent States (CIS) is among the largest regions of the world with numerous ...

    The State of KYC/AML Compliance in Commonwealth of Independent States (CIS) Region Explore More

    Blog

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams

    Businesses need to bring on reliable partners and investors who can contribute to growth, provide...

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams Explore More

    Blog

    ID Verification for High-Potential Digital Fraud Cases

    Instances of digital frauds and payment scams are highly damaging for banks and financial institu...

    ID Verification for High-Potential Digital Fraud Cases Explore More

    Blog

    How can AML play a role to impede the financing of terrorism?

    Money Laundering and Terrorism Financing are global issues and there is no dispute regarding it. ...

    How can AML play a role to impede the financing of terrorism? Explore More

    Blog

    Passport Verification: Preventing Document Forgery and Identity Theft

    In our current era of modern interconnection, global travel has become more accessible than ever,...

    Passport Verification: Preventing Document Forgery and Identity Theft Explore More

    Blog

    Major Fines in the Gaming and Gambling Industry and the Role of e-IDV

    The outbreak of Covid-19 has changed how we do business. Many firms that used to operate physical...

    Major Fines in the Gaming and Gambling Industry and the Role of e-IDV Explore More

    Blog

    Know Your Patient (KYP) – the next big thing in health care

    Its high time the hospital industry must think beyond providing just giving medical assistance to...

    Know Your Patient (KYP) – the next big thing in health care Explore More

    Blog

    Understanding eKYC | The Benefits, Processes & 2024 Forecast

    Governments worldwide require firms, such as financial institutions, to know who their customers ...

    Understanding eKYC | The Benefits, Processes & 2024 Forecast Explore More

    Blog

    A Brief Insight into Crypto Regulations in the Asia-Pacific Region

    The Asia-Pacific region is one of the areas with the highest rate of crypto adoption. Considering...

    A Brief Insight into Crypto Regulations in the Asia-Pacific Region Explore More

    Blog

    KYC and AML Compliance – Addressing the Challenge of Money Laundering in Online Trading Platforms

    An online trading platform is a program where shareholders and traders deal through financial int...

    KYC and AML Compliance – Addressing the Challenge of Money Laundering in Online Trading Platforms Explore More

    Blog

    Top 5 Trends for the Government Sector in 2022

    With the emergence of the new variant of COVID-19 “Omicron” in South Africa, it is possible that ...

    Top 5 Trends for the Government Sector in 2022 Explore More

    Blog

    Enhancing Workplace Safety: The Role of Employment Screening

     Recruiting new hires can often be a daunting task, as it is a time-consuming and work-i...

    Enhancing Workplace Safety: The Role of Employment Screening Explore More

    Blog, Identity & KYC

    Why You Need to Verify Identity Online

    5 Unusual Ways Stolen Identities Can be Used Online The need to verify identity in the digital sp...

    Why You Need to Verify Identity Online Explore More

    Blog

    How Artificial Intelligence is taking ID verification to the next level?

    Identity theft is deemed as a growing problem. Particularly with the increase in online shopping,...

    How Artificial Intelligence is taking ID verification to the next level? Explore More

    Blog

    Understanding Risk Assessment in the Gambling Sector – 2025 Edition

    Online gambling revenue is on track to exceed $150 billion globally by 2025, with Europe alone ge...

    Understanding Risk Assessment in the Gambling Sector – 2025 Edition Explore More

    Blog

    How Identity Verification Eliminates Social Media Scams to Enhance User Experience

    Social media has experienced exceptional growth in the past decade as a result of advancements in...

    How Identity Verification Eliminates Social Media Scams to Enhance User Experience Explore More

    Blog

    AML/CFT Compliance – Why Australia is a Safe Haven for Money Laundering

    Recent inquiries and cases against major Australian casinos have raised questions about the measu...

    AML/CFT Compliance – Why Australia is a Safe Haven for Money Laundering Explore More

    Blog

    5 AML Compliance Trends for 2023 – New Regulations and Technological Advancements

    From digital payments to new regulations on preventing fraud and FINRA’s guidelines on penalising...

    5 AML Compliance Trends for 2023 – New Regulations and Technological Advancements Explore More

    Blog

    Biometrics Bucking the Trend of KYP in Healthcare

    Over the last few years, biometric technology is deeply entrenched in various commercial marketpl...

    Biometrics Bucking the Trend of KYP in Healthcare Explore More

    Blog

    COVID-19 & Telehealth Fraud: Why ID Verification Is Necessary

    From being a medical coverage option to becoming a medical necessity, the telehealth industry has...

    COVID-19 & Telehealth Fraud: Why ID Verification Is Necessary Explore More

    Blog

    Securing Banks and Curbing Financial Crimes with Shufti AML/KYC Solution

    Banks and other financial institutions constantly face the challenges of tackling financial crime...

    Securing Banks and Curbing Financial Crimes with Shufti AML/KYC Solution Explore More

    Blog

    A Brief Overview of the RegTech Industry [2022 Update]

    The rising financial crimes have raised concerns of global regulatory watchdogs giving rise to Re...

    A Brief Overview of the RegTech Industry [2022 Update] Explore More

    Blog

    Know Your Player – Preventing Identity Fraud in Sports Events

    The ongoing trend of globalizing sports activities since the last few decades has resulted in a l...

    Know Your Player – Preventing Identity Fraud in Sports Events Explore More

    Blog

    Identity Verification Forecast: How Will KYC Evolve in 2023?

    As the world becomes more digital, scammers are honing their craft and employing trickier techniq...

    Identity Verification Forecast: How Will KYC Evolve in 2023? Explore More

    Blog

    UK’s On-Demand Culture – Building Trust & Security with Digital ID Verification

    People across the world are spending more time on the internet ever since the pandemic struck the...

    UK’s On-Demand Culture – Building Trust & Security with Digital ID Verification Explore More

    Blog

    Online Video KYC: Eliminate the Risks of Identity Theft

    The growing danger of cybercrime and data breaches has heightened the demand for effective verifi...

    Online Video KYC: Eliminate the Risks of Identity Theft Explore More

    Blog

    Unfolding Telecom Frauds through Effective KYC Compliance

    The growing adoption of smartphones has naturally spurred sharing of personal data. From providin...

    Unfolding Telecom Frauds through Effective KYC Compliance Explore More

    Blog

    Secure the Fintech Future with RegTech

    Financial Technology (Fintech) refers to the use of technological advancements in the financial i...

    Secure the Fintech Future with RegTech Explore More

    Blog

    Shufti Beyond Borders – Customer Experience That Drives Results

    About Stanton Brooks Stanton Brooks is a global customer experience (CX) leader specializing in d...

    Shufti Beyond Borders – Customer Experience That Drives Results Explore More

    Blog

    The Future of Customer Onboarding Post-COVID-19 Pandemic

    The COVID-19 pandemic has changed our lives to the fullest and businesses have suffered a lot as ...

    The Future of Customer Onboarding Post-COVID-19 Pandemic Explore More

    Blog

    KYCC – Going an Extra Mile to Prevent Financial Crimes

    As cases of money laundering and terror financing are increasing globally, the concerns to overco...

    KYCC – Going an Extra Mile to Prevent Financial Crimes Explore More

    Blog

    Embedding online identity verification methods for enterprise security

    The internet knows a lot about us now. And businesses are using this information to verify our di...

    Embedding online identity verification methods for enterprise security Explore More

    Blog

    Enhanced Due Diligence – How to Identify and Deal with High-Risk Customers

    Business relationships always come with associated risks that require carefully implemented measu...

    Enhanced Due Diligence – How to Identify and Deal with High-Risk Customers Explore More

    Blog

    Addressing Business Challenges Using OCR Scanner

    OCR text recognition is similar to how humans process and store information through reading. The ...

    Addressing Business Challenges Using OCR Scanner Explore More

    Blog

    Safeguarding Ride-Hailing Services with Identity Verification Solutions

    With the global digitization, mobility services are known to the world before the pandemic has ir...

    Safeguarding Ride-Hailing Services with Identity Verification Solutions Explore More

    Blog, Online Marketplace

    KYC for Banks: Reducing financial risk with a perfect digital solution

    The banking sector has to tread a very balanced path between compliance regulations and customer ...

    KYC for Banks: Reducing financial risk with a perfect digital solution Explore More

    Blog

    Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties

    For multinational businesses, reliance on external third-party vendors is crucial. However, failu...

    Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties Explore More

    Blog

    AML Compliance – Putting an End to Money Laundering in Crypto Firms

    In the past few years, cryptocurrencies were widely adopted as an investment method by not only i...

    AML Compliance – Putting an End to Money Laundering in Crypto Firms Explore More

    Blog

    5 Best Practices to Combat Identity Fraud on Social Media Platforms

    Social media has demonstrated extraordinary growth in the past decade as a result of improvements...

    5 Best Practices to Combat Identity Fraud on Social Media Platforms Explore More

    Blog

    Forex Market – Are there Enough KYC/AML Regulations to Keep Perpetrators at Bay?

    Regulatory pressure, hefty penalties and increasing criminal instances are some risks associated ...

    Forex Market – Are there Enough KYC/AML Regulations to Keep Perpetrators at Bay? Explore More

    Blog

    Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution

    The transport industry is on the verge of significant disruption, with new emerging technologies,...

    Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution Explore More

    Blog

    Why Digital Identity Verification is Booming – A Detailed Insight

    According to the report “Digital Identity & Document Verification Market & Technology Ana...

    Why Digital Identity Verification is Booming – A Detailed Insight Explore More

    Blog

    AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4]

    This blog covers the last chapter of our four-part series on AUSTRAC’s money laundering and terro...

    AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4] Explore More

    Blog, Identity & KYC

    Know Your Patient: Anti-Fraud Pill for Healthcare Industry

    Know Your Patient: The healthcare industry is more prone to data breaches than any other industry...

    Know Your Patient: Anti-Fraud Pill for Healthcare Industry Explore More

    Blog

    Digital Passports Driving the need for Biometric Verification at Airports

    Digital or chipped biometric passports have automated the verification process at airports. The e...

    Digital Passports Driving the need for Biometric Verification at Airports Explore More

    Blog

    AI-based IDV Can Effectively Curb Unemployment Insurance Fraud

    Throughout the United States, an emerging scam has taken the nation by storm. Unemployment Insura...

    AI-based IDV Can Effectively Curb Unemployment Insurance Fraud Explore More

    Blog

    A Comprehensive Guide to Understanding Ultimate Beneficial Owners (UBOs)

    Identifying UBOs and their control over a business is crucial for financial firms to meet regulat...

    A Comprehensive Guide to Understanding Ultimate Beneficial Owners (UBOs) Explore More

    Blog

    Safeguarding Financial Operations with Transaction Monitoring and AML Screening

    To enhance the power of anti-money laundering regulation, transaction monitoring systems have evo...

    Safeguarding Financial Operations with Transaction Monitoring and AML Screening Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started