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. 

Kyc Banking

4 Ways KYC Banking Regulations are Shaping the Future

Know Your Customer (KYC) regulations are vital for the banking system. Money laundering, depositing proceeds of crime/corruption or funding terror activities, are some common ways of abusing banks. KYC Banking regulations are complex, they also vary from country to country. Criminals constantly work to outsmart the system, therefore, the regulations have to evolve rapidly. This article looks at the evolution of KYC and what to expect in the future.

Why KYC Compliance is so Difficult!

The costs of complying with KYC regulations are high. Major financial institutions spend around $500 million every year on KYC compliance. This also lengthens the time for onboarding new customers – months in many cases. These extended wait times cost the banks dearly and frustrate clients. Customers expect swift and effortless services. If the process is long the customers do not hesitate to walk. 

Banks need to speed up the compliance process. Modern technology is helping achieve that. KYC services integrated into the banks’ normal compliance process can shorten processing times. 

Modern Trends in KYC 

Let’s look at four trends in the KYC process in banks, and how modern tech is ridding us of paperwork;

  1. Financial Crimes will Trigger Stricter Regulations

When media exposes corruption lurking in the shadows, it serves as an impetus for more stringent financial regulations. This effect multiplies if a notorious politician is involved in a money laundering or tax evasion scandal. Panama and Paradise Papers leaks, the Russian Laundromat scheme, Danske bank revelations in Estonia, and many similar ‘gates’ have contributed tremendously towards tighter regulations.

2. More Transparent Ownership 

FinCEN CDD Rule and the 5th Money Laundering Directive (5MLD) require banks to identify and verify the beneficial ownership. Nonetheless, banks rely too much on collecting ‘beneficial ownership information’ from clients through age-old paperwork. This takes up too much time and involves frequent back and forth movement of forms. Naturally, many data inaccuracies slip in the process this way.

Many countries are creating public records according to 5MLD with the help of technology. Remove the paperwork, manual entry, and verification, and the processing time reduces significantly. Data Science that uses Artificial intelligence (AI), machine learning, and other technologies, are making their way into the compliance process through RegTech (regulatory technology). 

3. Data Science will improve KYC 

Banks have a huge amount of data, which is difficult to manage. Siloed or lose KYC processes create duplicates, mistakes, cause low quality and delays. Among other solutions, APIs, third-party services, and robotic process automation are leading to better KYC research. In the future, this process will further improve. Data Science will utilize artificial intelligence systems and machine learning to collect, process and communicate data. This trio is improving KYC, the future looks promising.

4. Streamlined Process through Automation

Currently, there are plenty of services helping banks automate KYC compliance. In the future, managing data without artificial intelligence would be akin to going to a sword fight without the sword. For example, a state of the art solution for KYC compliance is an anti-money laundering AML check at the inception of the account. Artificially intelligent verification can check across all major black and greylists plus politically exposed persons PEP list in seconds. Then, it can accept or reject the application accordingly.  

Criminals are getting smarter. They have to, since they must devise new ways to cheat the system. The regulations have to match if not exceed such wicked schemes. Regtech is helping banks to catch criminals. Technology is offering better flexibility and compliance for banks. Often times people misunderstand KYC, assuming that it is one absolute and complete system applied in every financial institution in exactly the same way. That is not true. Every business needs a strategy to ensure that technology actually helps it rather than complicates its operations.

Banks are using Artificial Intelligence for Compliance

Onboarding is key to a banks’ progress and sustainability. Automation, data science, machine learning, and artificial intelligence solutions are making KYC Banking more efficient, despite constantly shifting regulations. 


Shufti Pro partner With Flexentral

Flexentral joins hands with Shufti Pro for KYC & AML

BATH, UK – (October 8th, 2018) Shufti Pro has partnered with Flexentral to provide its next-generation KYC and AML compliance services to this blockchain based company. Flexentral is basically a developer and publisher of a digital platform software that intends to simplify work management and make it flexible for managers and workers. Shufti Pro is an AI-based end-to-end identity verification SaaS product that offers multiple validation services to its customers.

Flexentral tends to introduce a harmonized platform where digital advancement of the modern age are utilized to make project management and task completion hassle-free for users. In doing so, it covers the entire work cycle starting from the recruitment of employees, leading to contracting and eventually resulting in payment at the completion of the assigned task. Powerful analytics tools are also part of the product so that project managers can get a visual brief about worker performance and progress they have achieved in light of payroll paid to workers.

To put it simply, Flexentral wanted to cater 2 categories of users: one who needs work done and the other that can do that work. But creating a reliable platform where trust dictates the terms of engagement led Flexentral on a search for a reliable KYC partner. Due to its blockchain based technology, in-app payments to workers from managers were also required to be made in a cryptocurrency. “Grain” was chosen as the token currency to pay for the services rendered by workers for managers on this digital platform. To ensure honest and transparent transactions, AML compliance was also necessary. The search of Flexentral concluded with Shufti Pro that promised similar flexibility as was desired by the European tech company. Shufti Pro can perform real-time KYC verifications with AML screening checks being performed in the background.

Talking about the collaboration between the 2 companies, CEO of Shufti Pro, Mr. Victor Fredung, said:

We were impressed by the business model of Flexentral as it had a lot of things common, in principle, with Shufti Pro. We are all for transparency and trust. Same was the intention of folks at Flexentral. Teams of experts from both companies shared ideas and worked diligently to integrate KYC verifications and AML checks from Shufti Pro into the digital platform from Flexentral”

Shufti Pro is already a GDPR compliant product which further made the decision easier for Flexentral to opt for this AI based ID verification product. Data security and usage of personal data for an explicit purpose were already clearly defined as per GDPR guidelines ensuring that Flexentral will not encounter any unnecessary compliance issues or monetary fines. The integration process was flawless as Shufti Pro maintains an updated API and SDK integration documentation.

About Shufti Pro

Shufti Pro is an emerging name in ID verification services. It was founded on 31st October, 2016 in Bath, UK. The goal of the company is to enable its clients with seamless customer experience, fraud prevention and undeterred revenue generation. The company offers state of the art SaaS, which engages Artificial Intelligence and Human Intelligence to provide ID verification services. Businesses can now conduct easy digital verification processes with lesser friction and more advanced technology. Currently offering its services for all countries of the world along with Universal Language Support, the company is located in United Kingdom with its global office in Sweden.

Please visit Shufti Pro here.

Shufti Pro Limited

Unit C401, Westfield Shopping Centre,

Ariel Way, London, W12 7FD

About Flexentral

Flexentral envisions an open, honest and transparent labor economy, servicing tasks and work with a platform providing instant insight in compliance, diversity and budget.

ride sharing kyc aml shufti pro

Ride Sharing Services and ease provided by KYC Services

Ride Sharing services might be the hottest form of transportation especially in developed countries but without utilising reliable KYC services, they tend to offer much more danger as compared to comfort to their customers. Highly popular among professionals and younger generation, Ride Sharing services have a lot to benefit from KYC services not only to cut down on losses incurred by identity thefts but they can also rid their service from any driver with a criminal past.

Ride Sharing services are quickly becoming a cost effective alternative to the traditional car services. Conventional means of transport like taxis have fallen in popularity partly because of the ease of use provided by ridesharing services to their customers as compared to regular vehicles for hire. These ride services offer instantaneous confirmation of ride requests, less-expensive rates, and typically a newer and more varied “fleet” of cars made possible by a list of drivers that are working for extra-salary or are not under regular structure of payroll from ride sharing service.

Despite having a popular appeal, ride sharing services are often criticized because of their non-regulated operations and less than casual approach towards their contracted drivers. That is why complaints of misbehavior and unprofessionalism are also heard frequently when it comes to ride sharing services. KYC services seems to have a perfect solution for these complaints.

KYC Services for Ride Sharing services

Ride Sharing services like Uber and many others with similar business model also have a lot to benefit from Digital KYC services. These services will not only help to safeguard company’s interest for customer onboarding process but the captains and drivers of the rides can also be verified against their provided credentials and documents. This will add an additional layer of security to ensure customer trust and credibility towards the ride sharing service.

Ride Sharing services can choose patented technology of Shufti Pro to authenticate driver’s licenses. As part of the verification process, Shufti Pro extracts biometric and alphanumeric data from IDs and applies Artificial Intelligence to authentic  the credential instantly. Ride sharing service will be able to also perform facial recognition match to validate users. Facial recognition feature of an authenticated product like Shufti Pro is as easy as taking a selfie and comparing it to biometric data contained in the government-issued ID. Results are given in seconds, comparing the face biometrics of a selfie to the image on the ID and include a liveness detection test to prevent fraudsters from using static images by ensuring that a live person is in front of the camera.

Why Shufti Pro?

Shufti Pro should be an ideal choice for ride sharing companies looking for a reliable KYC services provider. ID Verification services offered by Shufti Pro are available in every country of the world and can verify documents in every language of the world. It means that whether a ride sharing service has business operations spread over a specific country, region or entire globe, Shufti Pro will be of full assistance to its customers, providing flawless digital KYC services. Expansion into a new territory or region with entirely different language or design of official documents will not be an issue with Shufti Pro. ID verification services of Shufti Pro are easily integratable with pre-existing online systems, android or iOS apps and web applications. It means that no new modifications has to be done in the online system of ride sharing service that wishes to bring Shufti Pro onboard for AI powered KYC services.

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kyc solutions for crypto currency shufti pro

Why KYC Solutions are becoming a norm in Cryptocurrency?

KYC Solutions provide a great opportunity for crypto exchanges and virtual currency enthusiasts to earn credibility and legitimate status. These kinds of solutions are rapidly becoming important tools to regulate the cryptocurrency space. With virtual currency becoming host to billions of dollars in investments from a diverse range of sources, it is becoming more and more binding on the regulators and the crypto enthusiasts to adopt strategies and business methods that invite greater trust over the entire operating mechanism of cryptocurrencies. Some traditionalists believe that KYC Solutions tend to undermine the basic philosophy behind virtual currencies that is least regulations and better anonymity in financial sector. However, if cryptocurrencies and crypto exchanges resist such regulatory moves, it will be very hard to get international recognition for this blockchain based financial system. In order to earn legitimate status and witness a continuous boom in the fortunes of virtual currency floaters, KYC Solutions are a must have.

KYC solutions are not some artificial tools that undermine the functional aspects of virtual currencies or crypto exchanges but they will ensure greater transparency and will help to eradicate inherent financial risk attached with cryptocurrencies. As every cryptocurrency enthusiast is aware of the fact that the anonymity of virtual currencies is leading criminal elements from all over the globe, to use this virtual financial system to conduct money laundering activities in addition to risks of terror funding. Efficient and trustworthy KYC solutions help to solve the puzzle of anonymity in virtual currencies without compromising on the technological aspects of this state of the art financial phenomenon.

KYC Solutions and Territorial Borders

Each regulator and nation state follow a unique economic system and each respond differently to the anonymity of cryptocurrencies. Some regulators demand greater checks on crypto exchanges while others have a liberal standing towards crypto exchanges and virtual currencies. But as more and more cases are coming out where crypto exchanges or even regular banking institutions have been found as accomplice to money laundering and terror financing activities carried out by virtual bandits, the most liberal regulators have ordered crypto exchanges to mend their operations by introducing measures that encourage greater transparency.

KYC Solutions are considered to be the best means to the achieve the goal of greater transparency but the demand of KYC differs from country to country and regulator to regulator. As you know that major crypto exchanges have a global market outreach. It means that people from different countries can be trading virtual currencies using the services of a crypto exchange. Regulators are not much concerned in trading or buying/selling of any particular cryptocurrency. They demand from crypto exchanges to install KYC Solutions that don’t only collect personal information of users from authentic documents but that also verify those credentials. Regulators are forcing crypto exchanges to perform these KYC procedures long before a person starts trading on these exchanges. It means that customer onboarding process can be compromised because of not-so-efficient KYC solutions. Users don’t like to wait for hours, if not days, to get their credentials validated before they start trading. So there is always a risk of losing customers in order to comply with  regulators’ demands for greater KYC compliance.

Greater Productivity With Efficient KYC Solutions

With increasing pressures from international financial watchdogs and greater zeal to counter money laundering activities and terror financing, regulators are either forcing crypto exchanges or will start tightening regulations in coming months that will drive crypto exchanges to install more proactive Digital KYC solutions.

Shufti Pro is an ideal solution for crypto exchanges that are in need of fast yet efficient KYC Solutions. This artificial intelligence KYC Solution can verify identity documents issued by every country of the globe. This smart KYC solution can read documents in every language of the world which is just perfect for crypto exchanges whose business model encourages a global client base. Each verification and credential is verified within 30-60 seconds processing time by Shufti Pro which is just perfect for crypto exchanges and their customers who don’t want to waste unnecessary time on verification of identity documents. So with a changing world order that favours KYC solutions, Shufti Pro is perfect choice for crypto exchanges and virtual currency enthusiasts. It has already been used by several world renowned exchanges to verify the identity of their future users.

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Mobile Kyc

How Mobile KYC will revolutionize the Digital World?

Mobile KYC is the next frontier in Identity Verification services allowing greater access to businesses and enterprises to validate the identity of their users. There are billions of smartphone users at the moment in this world, each having the facility of a front-end camera and fast internet connection. This is a unique opportunity for businesses to increase their overall customer outreach without compromising on their credibility or profitability. Here are few ways in which mobile KYC can revolutionize the way cyberspace is utilised by different kind of businesses.

Mobile KYC for Banks

In today’s digitized world, where mobile banking is quickly catching up with normal means of banking and consumers are performing large deal of their banking operations straight from their mobile devices, it seems curious that they should still be required to visit a bank branch to open an account. As regulations are changing across each country based upon technological advancements, each banking organization is bound to follow specific set of Anti Money Laundering (AML) guidelines applicable on it by its specific financial watchdog. In order to cater to these regulations, banks are required to perform identity verification, and some of these territories also allow for remote identity checks. In such scenarios, mobile KYC can come very handy for banks to authentic transactions, open accounts and in order to perform other miscellaneous banking operations.  

If banks are already trusting remote KYC services to authorize payments and account access, it makes perfect sense to use mobile KYC for verifying credentials and identities of bank account holders. Using this method, bank users can perform biometric verification without requiring any human validation. In this model of Mobile KYC, the possibility for human error is heavily reduced and the desired remote customer experience can be achieved.

Mobile KYC for Ecommerce

In a world where nearly everyone is buying and selling on a mobile device, it makes total sense to introduce an intelligent identity verification system using Mobile KYC technology. The ease of e-commerce also comes with a real threat related to fraud and identity thefts. Scammers evolve with technology and thus they are also founding ways to commit online frauds especially in e-commerce field. Connecting with real customers and identifying fraudsters in the mobile world is a challenge for ecommerce vendors.

Although there is a large list of identity verification services available around the globe but each one of them comes with its specific set of limitations. The most efficient of the KYC system make it easier to access mobile data. This pre-accepted access to data can be used as leverage to ensure that specific criteria are met by legitimate customers before any purchase is made or payment is made by them on a certain ecommerce website or portal. This leads to an added layer of protection on commercial ecommerce websites, preventing them from frequent cashback payments for identity thefts of unverified credentials. Simply put, it’s another tool to help you reduce your fraud risk, improve your KYC standards, and just as important, secure an effortless experience for your mobile-minded customers.

What’s the right way to Mobile KYC?

Now that we have given a few test cases for utilisation of mobile KYC services, there needs to be made a clear identification of the fact that by which means mobile KYC will be provided to potential customers. There is always an option of having separate platforms, applications and mobile modules that perform Mobile KYC for businesses. They verify identity of users on their own and after proper verification is performed, they forward the confirmation to original business. This kind of customer verification is time consuming and makes the entire routine of identity verification a heavy load on business as well as customer.

Then there is an option of ID verification services like Shufti Pro that can easily integrate with pre-existing systems and applications. Shufti Pro has API as well as SDK integration options available for its users so that they can perform both web based and mobile based integrations. API for both iOS and Android platforms are available and many of our customers are utilising flawless ID verification services through Mobile KYC services of Shufti Pro.

Shufti Pro utilises Artificial Intelligence based technology in order to verify identity of users on smartphones within an industry best processing time of 30-60 seconds. Shufti Pro is available in every country and can even verify ID credentials in every language of the world. So next time, you are in need of a reliable ID verification service to perform Mobile KYC, feel free to use this out of box verification service.

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Nordic Banks brace for Digital KYC with centralized Database

Five major Nordic banks have formed a partnership to establish a company that will compile a centralised database for Digital KYC services. In order to ensure greater transparency and identify financial risks that can create regulatory penalties for these banks, KYC was considered to be an ideal candidate by the bank executives. A shared facility will not only provide wider data bank for banks to utilise but it is also targeted to reduce development cost and maintenance charges for each banking organisation.

The Joint venture will be known as Nordic KYC Utility and will solely be focused on development of an “efficient, common, secure and cost effective” platform for sharing confidential and personal information. The vetted data will be provided by customers for opening an account or to perform transactions and funds’ transfer.

Why Digital KYC for Nordic Region?

Nordic KYC Utility will be opening shop to provide KYC services not only to the founding banks but to large and midsize nordic corporates as well. The management of the founding banks plans to offer KYC services to third parties as well, once the entire database is fully functional and operational. KYC is the easiest method to verify the identities of future customers and sort out the bad apples before receiving a regulatory penalty for handling business of customers or enterprises that are deemed as financial risks by financial regulators. Financial watchdogs around the globe want banks and financial institutions to tighten their business practices in order to identify their users. It further helps in gathering information about why these customers are in need of banking or financial services and what kind of niche those businesses/individuals belong to. It helps regulators to find out the needles of financial criminals in the haystack of businesses and banking customers.

A Unified Platform for Digital KYC

The approach adopted by Nordic banks, i.e. a unified database for KYC compliance, is also being seen as an efficient alternative to the otherwise time consuming and multi-format KYC services available at different banks. As the founding members of Nordic KYC Utility are already one of the largest banks of the region, customers will be facilitated to perform KYC and get their credentials verified in a robust and uniform manner.

The formation of company is yet to be verified by the European Commission under the Merger Regulations of the European behemoth. It is expected that operations of the company and foundational activities will be charted out once an approval is received from authorities that is expected by the end of Q2, 2018.

When we talk about Digital KYC services, there is a strong case made by an up and coming SaaS product – Shufti Pro. It is an end to end verification service that is perfect for any banking or financial institution, which is looking to adopt KYC services in any part of the world. Powered by Artificial intelligence and machine learning algorithms, Shufti Pro can verify identity of every person in the world and validate credentials of a person within industry best time of 30-60 seconds. KYC services by Shufti Pro can verify identity documents in any language, belonging to any country of the world. Shufti Pro can also integrate easily with the pre-existing systems through its flawless API and SDK integrations. AML Compliance and Customer Due Diligence are added features of Shufti Pro for banks and financial institutions that want to completely rid their operations from any financial crime risk.

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Digital Kyc

South Korea want Crypto Exchanges to adopt Digital KYC and AML Compliance

South Korea is soon going to adopt regulatory measures to bring in crypto exchanges under regulatory compliance. Financial authorities like Korean Financial Intelligence Unit (KFIU) and other domestic financial regulators will make sure of the fact that crypto exchanges are using Digital KYC and AML Compliance practices to run their operations. Recently a move was instigated by the financial authorities in South Korea to clamp down on terror funding and money laundering activities. Earlier, they wanted to increase oversight on the operations conducted by banking and financial sector only. They intended to introduce stricter compliance guidelines to make these banks and financial institutes adopt KYC and AML Compliance measures. Later on, they decided that crypto-exchanges must also be brought under the regulatory scrutiny of organizations like KFUI. This official step will surely be in the right direction as it will pave the way for legitimizing of crypto exchanges and crypto currencies in South Korea.

Digital KYC for Korean Exchanges

Korean authorities are concerned by the non-regulatory functioning of crypto exchanges and trading of cryptocurrencies. They consider crypto exchanges and fiat currencies a viable platform that can be easily exploited for financing terror related activities or to launder illegally earned money.

Talks have been going on inside South Korea to introduce much stricter regulations on banks to make them answerable for large scale transactions and unnamed accounts. Proper verification of account holders and transaction destinations was being demanded by financial regulators to introduce a much more effective financial regime. To further the cause of a transparent financial landscape, it was suggested that crypto exchanges should also be brought under the guise of financial regulators as every company in the industry has been performing as a communication vendor after paying a mere $40 license fee.

KYC services for Crypto exchanges operating in South Korea will allow regulators like KFIU to better monitor the individuals trading virtual currencies through these crypto exchanges. With the entire industry being recognized as a regular industry and thus being regulated with necessary guidelines, legitimate status will be earned by the entire sector.

AML/CTF Measures for Korean Crypto Enthusiast

At the moment it is not clear that what kind of AML Compliance will be expected from crypto exchanges and there might be some apprehensions in overall market trading for crypto currencies, but one thing is clear: an AML compliant industry that is committed for CFT will go a long way for greater trust among customers. It will also ensure a global outreach to investors who want to invest or trade cryptocurrencies on a platform that is officially compliant and vigilant against financial risks. It is totally understandable that virtual currency exchanges can carve out a whole new different future for themselves if they decide to not only comply with regulatory guidelines of KFIU but even build on them to adopt a systematic approach to curb out financial risks.

Shufti Pro is an end-to-end verification SaaS product that offers both Digital KYC and AML Compliance. This AI powered ID Verification service can recognize documents and credentials in every language of the world and can verify the identity of a person in every country of the world. Korean crypto exchanges that are looking for a reliable verification products to bring them in line with regulatory oversight of KFIU and other domestic regulators must try Shufti Pro. With an industry best processing time of 30-60 seconds, Shufti Pro has already partnered with some of the most reputable crypto exchanges of the world for providing KYC and AML compliance solutions.

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How crucial is AML/CFT Compliance for Hong Kong based Businesses?

Hong Kong serves as financial hub of trade and financial industry especially due to its strategic location in APAC and Far East Region. Along with Singapore, Hong Kong’s financial market handles funds from Western capitals of finance for global trade activities. This makes AML Compliance a necessary aspect for funds managers and banking institution. Stock market trading and financial services also make up a major part of this city state’s economy. Recently, the trend to verify the identities of users and clients by major players of Hong Kong economy has gained prominence. This trend gained momentum not only by greater regulatory scrutiny to clamp down on money laundering activities, but private institutions and businesses also wanted to reduce the risk of being fined for becoming an accomplice in a financial crime.

Digital KYC Services

Hong Kong is aspiring to become a Fintech hub and the authorities understand that it is not possible without establishing a state of the art AML database. On their part, Hong Kong government is ready to fast track this entire Digital AML process by launching new smart identity cards that will be replacing existing ones by 2019.

Even banks doing business for decades have been forced to take a proactive role in ascertaining the identity and credentials of their users before providing them with financial services. HSBC is one such example as the bank has started gathering greater customer information to introduce transparent business practices. Just like HSBC, banking organizations and financial institutions were forced to adopt KYC because they were fined in some other territories and countries. For example HSBC was fined millions of dollars in United States for not being vigilant about the identity of its customers. Thus the bank has introduced greater compliance practices like KYC to prevent further penalties.


AML Compliance in Hong Kong

Just recently, Hong Kong authorities changed their Anti-Money Laundering regulations to make them stricter and thus ensuring compliance from ever-so-powerful banks and financial organizations. As a global hub of trade and funds management in the eastern hemisphere, Hong Kong provides a unique opportunity for financial criminals to launder money or transfer funds under the guise of stocks or tradable goods.

Today, innovative practices are being adopted by banks and funds managers in Hong Kong to check for money laundering and terror funding. Account holders are being asked to declare number of transactions that will be performed from their accounts on monthly basis. For larger number of transactions, customers have to give a valid reason. In case a customer signs up with maximum 5 transactions per month and suddenly there are hundreds of transactions being made from that account, red flags start going up.

Recommended For You: RegTech facilitates effortless AML Compliance

KYC and AML Compliance has become necessary to ensure transparency in customer’s global data, operating out of Hong Kong. A centralized KYC and AML compliant system adopted by banks and financial organization will allow for a hassle free account opening, online transactions and easy insurance claims.

Now with all this vital information and confidential data being collected by banks, serious concerns have been raised about the security of data and potential of data breaches. This is where a tried and trusted solution like Shufti Pro can come in handy for financial institutions and banking industry of Hong Kong. It is an AI based comprehensive identity verification service offering both Digital KYC and AML Compliance services. Each digital KYC verification is performed within 30-60 seconds by Shufti Pro and background checks for AML Compliance are performed against 1000 Watch Lists and sanction lists, in addition to 3000 databases. This huge data is maintained by financial crime regulators like UN, Interpol, OFAC and HMT. This gigantic databank for AML Compliance is updated every 14 minutes for constant and updated monitoring.

Shufti Pro is perfect for a global financial hub like Hong Kong as it can verify identity of a person belonging to every country of the world. Its Artificial Intelligence backed system can read and verify credentials in every language of the world as well. So, if you also want to avail top class identity verification service for Digital KYC and AML Compliance, then Shufti Pro is the right choice.

Digital Kyc AML Compliance

Shufti Pro – Pioneer in automated Digital KYC and AML Processes

Shufti Pro has become a leading identity verification service in a small amount of time because of its robust digital KYC services and AML process. With Artificial Intelligence set at the heart of Shufti Pro, automated verification has reduced the processing time to verify the identity and credentials of users. Employing modern day tech and machine learning techniques, Shufti Pro has established a full-proof Digital KYC system that can make every person on the face of planet 100% verifiable within 30-60 seconds.

Shufti Pro focuses not only on an automated system but also ensures safety of data collected for verification. PCI compliance and GDPR authorized services of Shufti Pro puts it at position of strategic advantage which can be leveraged for higher productivity without compromising quality of services. 24/7 access available in all countries of the world with Universal Language support means that Shufti Pro services are unmatchable when it comes to Digital KYC.

Automated Digital KYC

Shufti Pro provides its Digital KYC services through various means like

  • ID Check
  • Identity Check
  • Documents Check

Digital KYC Services from Shufti Pro not only covers all the above aspects of customer’s identity verification but it also provides proof of verification to ensure transparency. A recorded video stream, sequence of images and 24/7 access to customer data ensure that Shufti Pro’s clients are always in control of the identification services that they are paying for. Flawless API and SKD integration means that Shufti Pro will merge with your online portals and apps without causing any hassle for your users.In order to provide multi-faceted digital KYC services, Shufti Pro offers both Video Verification and Still Verification. Shufti Pro have made a comprehensive system of identity verification and left it on its valued clients, that what kind of identity verification services their business require.

AML Compliance

Real time background checks performed by Shufti Pro makes it a reliable AML Compliance tool for organizations operating in Banking & Finance domain. Instead of wasting human resources on manual verification, financial sector can make use of end to end verification services by Shufti Pro. AML Compliance services from Shufti Pro are cost effective and comprehensive at the same time.

Banking on the huge data compiled from 1000 checklists and 3000 databases, Shufti Pro enables organizations to forecast and identify financial risks and frauds. Thorough cross-checkings from huge data bank – updated every 14 minutes – ensure a durable oversight for customer onboarding and funds transfer. Shufti Pro reduces the risk of earning penalties or monetary fines from regulators due to lack of diligence against laundering activities. It provides protection against financial crime risk by:

  • Filtering customer data
  • Checking for Politically Exposed Persons (PEP)
  • Verification of sudden increase in  funds
  • Flagging of suspected users

Technologies that make Shufti Pro Top of the Line

Shufti Pro is a power house when it comes to governing technologies. Not only does it encompass Artificial Intelligence but it also incorporates Human Intelligence, creating a  Hybrid Intelligence for an error-free Digital KYC System. Machine Learning Algorithms are used to convert images, text data and credentials into binary data that is then cross-checked with the original source. This intelligently designed system of Shufti Pro can detect

  • Photoshopped / Counterfeit Items
  • MRZ Codes from Passports
  • Hologram Detection using artificial neuron vision
  • Picture Edges to verify authenticity of documents
  • Micro Expressions of the users
  • Face Liveness to detect a real person
  • 3D Tracking

As a pioneer of end-to-end Digital KYC System, Shufti Pro is pushing the envelope by utilising Artificial Intelligence that has 99.6% precision of verifying the identity of an individual.Chances of false positives is substantially reduced with Shufti Pro as it has the power to detect any discrepancy in format, information or visual data provided by the user. Shufti Pro uses best practices of machine learning to provide superlative Artificial Intelligence making the Digital KYC of Shufti Pro second to none.


Shufti Pro is a full-proof system for companies that want to indulge the services of a Digital KYC provider that understands the challenges of identity verification. Round the clock human intelligence support, verification services for every country of the world and support for every language are all the features that help Shufti Pro to stand out from its competitors. Just pay one time setup fee, without any commitment for minimum number of verifications, and after that pay as you go. Shufti Pro is a comprehensive digital platform covering both KYC services and AML compliance at the same time.

Shufti Pro partners with BITTIGER

Shufti Pro Extends Digital KYC Services To Silicon Valley based Venture – BitTiger LLC


Bath, United Kingdom – May 14, 2018 – Shufti Pro, the PCI certified, AML and Digital KYC services provider, announced today their partnership with BitTiger LLC.

Shufti Pro, the emerging go to name for KYC compliance, is ecstatic to be acknowledged as the official Know Your Customer (KYC) collaborator for BitTiger. An online learning medium, providing high tech educational courses for global students to undertake at affordable rates. Shufti Pro will be extending it’s Digital KYC services which can perform remote identification of students who are scattered around the globe. The process is assisted with comprehensive compliance policies which Shufti Pro adheres with.

BitTiger was formed with the vision to fill in the potential gaps between traditional education institutions and the practical skills required to be immediately productive in the industry. Providing hands on education to students and addressing key industry specific knowledge/training deficits for clients.    

As a global platform, BitTiger required a solution that proved to be robust and equally scalable according to their target requirements; which was to ensure the protection of their proprietary content by verifying students for registration using Digital KYC Services.

When enquired, this is what the BitTiger officials had to comment. “Shufti Pro offers great identity verification services to meet the needs of BitTiger, for course enrolment. In order to protect the copyright of BitTiger’s educational content, we require students to verify their ID to register. Shufti Pro provided customised portals for different courses, which made it convenient for BitTiger to operate with the  high volume of customers. The built-in video identification feature is intuitive for customers, to follow the process and verify successfully. We have found the team at Shufti to be very responsive in helping with any questions or concerns.

Shufti Pro’s CEO had the following to voice on the collaboration. “We are excited to be a part of BitTiger’s initiative to prepare the next generation of tech gurus. Also, their effort to ensure that these students are trained to be ready for the latest tech jobs is a noble cause. Our partnership will add value to the portfolio of both the companies, since each is the best in their respective industry domains. We look towards a fruitful and long term business relationship with BitTiger.

Shufti Pro offers a comprehensive platform for Digital KYC services, to ensure risk mitigation and fraud prevention. Providing customers with an unmatched UX/UI interface experience, that provides least human intervention and flawless AI technology in operation. Verification and assessments are provided back with industry best sixty (60) seconds or less response times. Shufti Pro will aid BitTiger LLC by providing unmatched verification services, alongside a superior UI experience. A blend of Human and Artificial Intelligence will always make for superior result accuracy and maximum assessment for fraud prevention. To maintain an educational repute and standard, it is equally important for educational providers to validate the identities of their students and prevent any malpractice.

About Shufti Pro

Shufti Pro is the upcoming entrant in identity management, Digital KYC and AML. The company saw inception on 31st October, 2016 in Bath, UK. The primary goal of the company is to provide its users with optimal customer experience, while maintaining highest levels of fraud prevention. As a company, it offers industry perfected SaaS that integrates a superior blend of Artificial and Human Intelligence. Operating in access of 220 countries and over 150 languages, businesses can now undergo hassle free digital verification processes, with least friction along side unparalleled technology. The company is located in United Kingdom with its global office located in Sweden. Please visit Shufti Pro here.

Shufti Pro Limited

Unit C401, Westfield Shopping Centre,

Ariel Way, London, W12 7FD

About BitTiger

BitTiger is an interactive learning platform, that provides cost effective and quick training to students in practical skills development. BitTiger prepares the students of today, to industry tailored requirements for their future employment with large tech companies. BitTiger aims to be more accessible than a university set up and more effective than MOOC courses.

BitTiger is primarily a community of Chinese computer engineers studying and working in North America. Mostly offering, Pre Recorded Courses, Project Intensives, Mastery Programs and Career Services.

e-KYC Solutions

Ensure Digital Security with e-KYC Solutions

In today’s world where the distances have been reduced considerably with the advancement of technology. Such so that the systems/computers of the world are also connected through the World Wide Web. The availability of information has become very easy and extremely quick. As is with ease there are problems as well. Not everyone uses the information with good intent. To safeguard the privacy of information has become a daunting task. e-KYC is a solution that can to a very big extent prevent access to restricted information by unauthorised individuals. The system is so effective that even if an unauthorised individual has hacked the Username and Password to access the information, the system would be able to prevent access. The hypothetical situation below will elaborate the problem we are talking about. We will discuss the solution afterwards.

Imagine you are in the IT department of a large commercial enterprise, your company sells a vast number of products and have in your database personal information of several hundred thousand people who are your customers. There are very few employees who have access to that data given all the talk about privacy protection. Your servers have good security protection and everyone with access to the data has passwords that are forcibly changed every week. You feel confident that a data leak would be impossible. Everything goes smooth until one Friday the 13th you get devastating news that your security has been compromised. You find out that a large amount of customer data has been copied. The breach occurred when somebody logged in using the business analysts login password, the problem was picked up when the actual business analyst logged in. The system automatically kicked out both people, but the damage had been done till that time. You start to sweat realising you will have to inform your boss and also the customers and the incident will become a PR nightmare. You investigate the issue and you find that the business analysts stolen laptop was accessed and hacked. You start searching online for a possible solution to ensure that regardless of having a password only the authorised person may have access to the data. Through your search you come across a digital KYC service provider that is offering unprecedented quality for money. It has several powerful tools that make it a very reliable user verification service

As you can see it is quite easy to get into a system remotely with a username and password. Now we will discuss the solution and look at other ways that the system can ensure fraud prevention.


Why e-KYC is the Answer?

If we look at the hypothetical incident mentioned above the problem that occurred is quite common, passwords do get hacked. There is a need for a system that can somehow verify that the person entering the password is the right person. e-KYC service providers are the right tool for this task. They add another level of protection usually at a competitive price. Run by an advanced AI it verifies the user through the use of a webcam or their smartphone to make sure that the correct person is attempting a login.  

How does e-KYC work to secure access?

As we mentioned at the heart of the user verification service is an advanced AI. The AI using the Internet and a webcam verifies the person requesting access. Once the login and password is entered, if it is correct the AI takes over and requests the user to face the webcam. It scans their face checking for anything that might hide or alter their identity — heavy makeup, mask or a picture instead of a live person. Then it will ask the person to display their ID and focus on the picture, name, DOB, and number (if applicable). Then it will match all the details with existing records and only then grant access to the main system once it has a positive match. If it is not matched the user will not be granted access.

So how is a User Verification Service useful in Fraud Protection:

The same user verification service that secures the systems of a company can allow for secure fraud protection. It can stop the use of stolen credit cards or add to the credibility of an institution or organisation. It shows that the organisation that has implemented such a solution actually cares for its users, customers, clients, etc. As it is usually a paid service, the scams and fraudulent organisation never spend on e-KYC solutions or care about securing the way they get their income They just care about the money since they are going to run off in the end.

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