iDenfy’s biometric identity verification will enhance security for Coinmerce

iDenfy, the digital ID verification, compliance, and fraud prevention startup, teamed up with Coinmerce, the crypto investment platform offering users an easy way to buy, sell and swap various cryptocurrencies.

IDenfy will help welcome newly registered Coinmerce users by authenticating their identities using biometric verification.

While crypto fraud rises, businesses seek new ways to combat financial crime. According to the Federal Trade Commission, more than 7 thousand people reported losses due to crypto-related scams, resulting in $80 million in damages last year.

Specialists argue that criminals target the crypto industry due to the lack of regulations. Like banks and other, more traditional financial industries, fraudsters use crypto because the industry is one of the quickest ways to anonymously steal digital assets. 

iDenfy argues combatting this issue is vital, and to do so, organizations must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.

According to the ID verification provider, authenticating customers helps crypto players prevent fraud, such as stolen identities and the use of forged identity documents, while, at the same time, enhancing the overall stability of the crypto sector.

On top of that, the growing numbers of crypto users, along with their high-value transactions, motivate more crypto industry players to secure their platforms with ID verification. Hence, Coinmerce isn’t an exception. 

Coinmerce is a cryptocurrency trading platform focusing entirely on usability and simplicity to offer its users a safe and straightforward experience. As claimed by Coinmerce, encountering errors during the KYC process isn’t acceptable, especially in today’s digital age, when customers expect a seamless onboarding journey. The crypto platform didn’t want to miss new user opportunities and lose revenue.

To overcome compliance requirement challenges and improve its ID verification service, Coinmerce decided to partner with iDenfy. The newly selected provider was able to fix onboarding issues and lower the abandonment rate, resulting in a more user-friendly and an overall better experience for the crypto platform. Coinmerce uses iDenfy’s IDV services on Android and iOS apps.

iDenfy’s identity verification is best known for its accessible, four-step process: the user selects their identity document type and country, captures a photo, and then takes a selfie.

The AI-powered software uses 3D liveness detection, allowing iDenfy to guarantee that the person completing the verification is real, preventing the misuse of deepfake videos, masks, and other fraudulent ways to pass the check. The KYC provider is also certified by ISO/IEC 27001 standard, which adds another layer of assurance for Coinmerce. 

“Our team is happy to join forces with iDenfy. Aside from standard rules, our identity verification process must comply with the regulations to prevent money laundering and terrorist financing. We focus on security to provide our users with the necessary sources to safely buy and store crypto.”   — stated Luc Smits van Oyen, the co-founder of Coinmerce. 

“It’s no secret that fraudsters try to use fake identities to open crypto accounts. Following strict KYC guidelines helps businesses identify bad actors and prevent financial crime. Partnering with a responsible business is always a pleasure. Our team is happy to help Coinmerce build a user-friendly security system powered by end-to-end automation.” — expressed Domantas Ciulde, the CEO of iDenfy. 

Frequently Asked Questions: Crypto Identity Verification

Cryptocurrency transactions offer anonymity, but regulations have increased the need for identity verification on many crypto platforms.

Here's a breakdown of some common questions regarding crypto identity verification:

Does Bitcoin require identity verification?

As a decentralized network, Bitcoin doesn't require identity verification for transactions. However, cryptocurrency exchanges and platforms that allow you to buy, sell, or trade Bitcoin often require identity verification. This is due to regulations preventing money laundering, terrorist financing, and other financial crimes.

How much does identity verification cost?

Identity verification on crypto platforms is typically free of charge. However, some platforms might charge fees for specific transactions (buying, selling, or withdrawing crypto), which the verification process could indirectly impact.

What is the verification process for crypto?

The specific verification process can vary depending on the platform, but it generally involves two steps:

1. Know Your Customer (KYC): This involves providing personal information such as your full name, date of birth, address, and nationality. You may also be required to submit a scan of a government-issued photo ID (passport, driver's license, etc.).
2. Proof of Address (POA): This may involve submitting a document like a utility bill, bank statement, or tax document verifying your residence.

Why do crypto sites ask for ID?

Cryptocurrency platforms ask for ID for several reasons:

• Compliance with Regulations: As mentioned earlier, KYC and AML (Anti-Money Laundering) regulations require platforms to verify user identities to combat financial crime.
• Security: Verification helps prevent fraud and identity theft by ensuring users are who they claim to be.
• Account Recovery: In case of lost login credentials or account access issues, verification helps platforms confirm your identity and recover your account.

Conclusion

While some users might prefer complete anonymity, identity verification is crucial in making crypto transactions more secure and trustworthy.

Choosing reputable platforms with robust security measures and clear verification procedures is important.

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