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Crypto is a new currency that was introduced to the world in 2009 by Bitcoin. In a short time, there were many other different coins too. And this technology spread globally. But unless it started more than ten years ago, it is still considered a new technology, and there are debates about its usage.The main reason for the objection to cryptocurrency usage is that this currency is hard to control. It doesn't have a physical presence, is processed in a noncentral network, and is transferred by blockchain technology.
Cryptocurrencies have many advantages when compared to traditional currencies. For example, transferring is fast and cheap because there is no need for a third party to transfer. And also, cryptocurrencies don't depend on central institutions for currency control or manipulation.
But besides these advantages, there are some worries about this technology. Because this flexibility can be dangerous in the hands of malicious users. Financing terrorist actions, traffick of drugs or illegal services, money laundering, and similar illegal actions became untrackable.
The increasing usage of cryptocurrencies in illegal actions alarmed authorities and cryptocurrency markets. Protecting the integrity of financial systems and preventing illegal actions are not important only for central institutions, but also for crypto sector actors. So the crypto markets and platforms started to use KYC (Know Your Customer) ve AML (Anti Money Laundering) policies, such as other financial institutions.
KYC (Know Your Customer) means all the processes that firms do to verify their customers' identities. And AML (Anti Money Laundering) is the process of preventing the entrance of illegal money into legal markets. It includes legal regulations and measurements.
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Financial institutions have been using AML procedures for a long time to prevent financing illegal actions, such as terrorist actions or drug trafficking. These procedures do not only verify customer identity but also, track their transactions and create risk assessments.
The most common usage of KYC procedures is customer verification in remote onboarding. The firms demand identity cards from customers to verify and after the verification, let the customers go into their system. The firms use different technologies such as OCR, hologram checks, smart ID checks, etc...
But verifying the id cards is not enough anymore because of the increase in identity theft. So the crypto sector needs more secure measurements. Using biometrics to verify customers' identity is increasing in crypto security. Face recognition is the most trending biometric verification recently. This technology scans the customer's face and adds it into the system in the onboarding process. And every time the customer wants to log in, the system recognizes the face and lets them in after verifying their identity. But even face recognition is not enough to stop fraud! The firms take measurements to detect fake images. Recently deepfake technology creates very successful synthetic content. Creating a fake image of a customer, imitating someone's voice, and creating a video, non of them is impossible, with Deepfake technology. To combat this threat, ai is the only tool we can trust!
Developers use liveness tests to detect this fake content. It became an important KYC module recently. The Liveness test checks the consistency of the image or video. And then, it detects whether it belongs to a real person or not.
Techsign KYC solutions have all the technology that the crypto sector needs. And all these solutions are user-friendly and have high successful rates.
Techsign's ai based solutions can be customized according to the needs of customers. For example, crypto firms can expand in different countries and need to verify different national id cards. It is not a problem for Techsign! Teaching a new international id card to the system takes only a few days. OCR technology has a similar process too. Techsign's ai technology can learn all the alphabet. Currently, it knows Latin, Cyrill, and Arabic alphabet. Besides that, Techsign developed a new OCR technology with the name wordify. The success rate of current OCR technologies is 25%, but wordify has a much higher success rate, +80%.
Techsign team does not work only to increase OCR success, they also take seriously the threat of deepfake. They are not satisfied with the 90% success rate and work to make it better.
Creating ai based KYC solutions gives the chance to adapt easily to changing needs. Educate ai on the needed algorithms is a task that only the best software engineers can achieve. And Techsign IT team has the ideal people.
If you have a company in the crypto sector, contact us immediately to get informed about our security solutions.
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