Global Digital Currency Companies Demand Automated Identity Verification to Capture Growth During Crypto Surge
Crypto markets are some of the most complex markets in which to ensure regulatory compliance due to potential fraud, money laundering and other identity-related risks tied to moving money, but they are also becoming one of the most highly demanded currencies by consumers worldwide. With recent announcements like PayPal’s, which made all eligible PayPal account holders in the U.S. able to now buy, hold and sell cryptocurrency, we can confidently say the crypto market surge is not slowing anytime soon. PayPal’s announcement, coupled with this week’s news of record-high volatility and pricing for bitcoin according to Yahoo! Finance, is setting digital currency companies up for a race to scale customer verification and fraud prevention to ensure safety, accuracy and efficiency across all transactions.
AU10TIX Technology Sustained 623% Volume Increase for Crypto Customers Over Last Eight Weeks
“AU10TIX is proud to be the identity verification partner to the ten largest and most well-known crypto exchanges in the world and, across our platform, we’ve seen up to a 623% identity verification volume increase for some of these exchanges in the last eight weeks,” said Ron Atzmon, AU10TIX Active Deputy Chairman. “We’ve processed this massive spike in demand without any impact to the speed or performance of our daily operations. We are fully prepared to support digital currency companies that must balance experience, risk, safety, and growth during this dynamic and unprecedented time. Our systems are built to adapt to the demands of our customers and the markets with a strong focus on reliability and resiliency.”
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Why Automated vs. Manual Identity Verification Matters for Cryptocurrency
Identity verification is a compliance and security requirement for all financial institutions, but digital currency exchanges are perhaps the most sensitive to processing time as their #1 driver of growth is new user acquisition. Getting people to execute their first trade as quickly and easily as possible when demand spikes with a big bull market is a priority in order to avoid customer churn.
“The extreme volatility of crypto markets requires consumers to execute transactions in real-time to capture the highest value, which leaves no room for friction in the experience. An efficient onboarding and approval process is paramount,” stated Jonathan Wilson, AU10TIX Chief Product Officer. “AU10TIX’s automated identity verification solutions enable decisions in 4-8 seconds, not minutes, hours or days, so digital currency exchanges can safely keep pace with crypto consumer expectations.”
Manual identity verification solutions, on the other hand, create processing bottlenecks, negatively impact customer conversion rates and are unable to keep up with unanticipated demand spikes. They also lack support for localized identity documents, languages and changing regulations, which global exchanges require.
Fully automated, global identity verification solutions address all these needs and ensure crypto markets can accept scale when they see it in a seamless, cost-efficient way. (You can listen to AU10TIX Advisory Board Member David Birch and Yoni Assia, CEO of e-Toro, here talking about this in AU10TIX’s web series from earlier in the year.)
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Identity Management Innovations Are Critical for Crypto Growth
As more people and businesses enter the digital currency market, infrastructure strategy around identity management will differentiate the competition. Looking at where friction can be removed from the KYC process without sacrificing confidence when onboarding new users and how to optimize and automate for increasing regulatory compliance are good places to start
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