The ability to verify documents and comply with anti-money laundering (AML) and know-your-customer (KYC) requirements is now a differentiator for crypto firms, said identity verification provider Trulioo.
Anatoly Kvitnitsky, Trulioo’s vice president for growth, told Cointelegraph that as crypto crosses many borders, those who want to stand out and maybe attract those looking to exchange crypto to fiat or vice-versa compliance with regulatory requirements.
“It is a good idea to improve the crypto world’s approach to compliance, especially as exchanges become more and more common,” Kvitnitsky said. “Definitely something like document verification is very much a differentiator and that’s something we’ve seen a shift in the past two years or so. The crypto world is really looking at these solutions.”
Trulioo launched EmbedID, a tool that embeds identity verification for KYC through an API, on July 8. It is targeted for firms with a small compliance team to make KYC and AML activities more automated and less manual. Kvitnitsky said Trulioo and EmbedID already count some crypto companies as customers.
Kvitnitsky said Trulioo wanted to make document and identity verification as streamlined as possible for clients that don’t have access to large bank-grade technologies. Crypto exchanges and asset managers, he said, often have a very small team of people who will look at all the papers their own clients present to make sure these comply with regulations.
Regulatory jurisdictions also have different KYC and AML requirements, said Kvitnitsky, so it can be difficult to match the needed paperwork for each country. He said the inherently international and borderless nature of crypto is perfect for Trulioo.
“If the firm really wants to work with regulators, you’re going to see a more mainstream approach to compliance,” Kvitnitsky said.
Some governments have stepped up monitoring of crypto even though few have specific regulations. The United Kingdom’s Financial Conduct Authority urged local crypto businesses to register with the watchdog as a means to help it keep an eye on AML activities. The Commodity and Futures Trading Commission of the United States also promised a new crypto framework soon.