Cryptocurrencies may soon be subject to strict money laundering prevention checks in the European Union, and there is a tentative agreement between the EU Parliament and the Council to impose stricter controls. Bloomberg Report.
Money transfer restrictions have been extended to cryptocurrencies. This means that service providers must comply with the same regulations as other financial service providers, including Recommendations 15 and 16 of the Financial Action Task Force (FATF). These articles seek regulation of services AML and “Counter Terrorism Financing” (CFT) checks, and “Travel Rules”, a provider with auditability for those involved in wired transfers, respectively.
Therefore, knowing the customer and compliant identity verification process must be incorporated into the workflow of European crypto service operators.
However, this transaction mostly excludes unhosted private wallets. CoinDesk..
Sumsub survey shows room for improvement
in the meantime, Sumsub Digital identity verification is fairly widespread in the crypto industry, but it is not always robust. Over 84% of companies have already performed identity verification, and nearly 80% use automated KYC solutions for AML compliance and fast onboarding.
Selfie biometrics are used by just over 7 out of 10 people, of which about 2% have not yet been adopted. Liveliness detectionAccording to Sumsub statistics.
Page 51′Status of identity verification in the crypto industryThe report from Sumsub is based on a survey of 200 crypto businesses, data from the company’s own identity verification records, and a survey of experts.
More than three-quarters of companies using manual user validation plan to adopt automated validation technology.
The report also reviews digital identity verification challenges and best practices and predicts future trends in this area.