Overcome the digital fraudulence right away with the KYC compliance solutions of a leading digital KYC service provider Shamla Tech!
Almost a majority of the business sectors today are in need of the e-KYC services to verify the identities of their customers with ease. Particularly, the payment and financial sectors utilize this service to a greater extent, as it seems inevitable for their business operations.
As we all might be aware that the cryptocurrency exchanges come under the category of payments, they obviously require KYC verification services to get rid of the identity thefts.
By the way, if your business belongs to any of the crypto exchange types like bitcoin or any other altcoin exchanges, then you would more likely end up with tiring in search of the right digital KYC service provider in the industry to meet your compliance demands. So, herewith I would like to introduce an industry-leading online identity verification service provider Shamla Tech.
They have been providing their customers with digital KYC solutions over the years since they have rock-solid expertise in the category of online identity verification. Besides KYC, they can provide you with robust AML compliance software as well to make you stay away from the anti-money laundering threats.
When it comes to payment processing in a cryptocurrency exchange, verification of user identity is of utmost importance as it deals primarily with money transactions.
In this blog, let us see what is e-KYC, how its compliance subjects to the safety of digital transactions, and what are all the benefits that these compliances are known to bring for the cryptocurrency business sector.
What Is All About E-kyc?
E-KYC otherwise termed as digital KYC involves the procedure of filing identity-related documents of a customer to facilitate identity verification. By the way, the business organization can get to know about its customer the most than anything.
E-KYC demands the customers to furnish their personal information like address, identity or contact details to get verified with them instantly with free of hassles. Here, the verification process takes place with the matching of identities of the customer with the information furnished.
If the data doesn’t match, then the appropriate user identity is prone to misuse, thus giving a pre-detected alert for the organization to know exactly about its customer and the risks he is ready to pose for the business.
E-KYC is a mandate for both the customers and the clients/service providers to get the desired business results. Hence, it should be taken with utmost care.
How Do Digital Kyc Solutions Help Address The Common Complications With The Payment Sector?
‘’Put forth the concept of digital KYC to make your virtual marketplaces get protected from scams’’.
Basically there are two major constraints that drive businesses of the payment sector (let us take cryptocurrency exchanges for instance) towards the adoption of online identity verification services like KYC, which are listed as follows:
- Constraints on the supply side: The difficulties in customer identification and risk assessment shrink the scope of the overall supply market.
- Constraints on the demand side: The financial business systems get pushed to the problem of lacking potential customers out of the business due to comfortless customer onboarding strategies.
In order for the cryptocurrency exchange businesses to combat these rising concerns, a process called customer due diligence (CDD) comes in, which is nothing but a part of digital KYC.
Yes! CDD is what contributes the most to the aspect of identity verification since it admits the overall information about a customer to the organization. Moreover, it portrays the risks that he is going to pose for the business in case of lacking formal identification or missing identity authentication.
Amendments Of Aml Directives And Their Impacts On The Crypto Economy:
‘’Get to know about the list of AML directives available as of now right from here to make your crypto exchange business stay in line with the AML compliance standards’’.
Once before the evolution of revised AML directives in the market, only about 32% of the cryptocurrency exchanges were found to meet the compliance standards. But today, the situation gets changed with the fact that all the cryptocurrency exchanges must reform the way they operate, as per the EU regulations.
This has been amended right in May 2018, when the GDPR regulations came into play. GDPR is nothing but the General Data Protection Regulations implemented by the European data protection council.
As per the rules of GDPR, the cryptocurrency exchange marketplaces and the ICO business models belonging to the EU region should update the data access and protection policies in accordance with the basic standards of compliance.
Besides GDPR, the fourth AML directive got its launch in June 2018, and it was intended to combat the cryptocurrency crimes influencing the industry. According to this directive, a cryptocurrency exchange should maintain its AML screening process to get survival in the market in the long run.
Furthermore, the fifth AML directive got its launch in June 2019, whose goal was to improve the security with the exchanges or transfers done in the cryptocurrency exchanges.
In case of the observations of any deviations from these regulatory directives, the concerned organization will more likely be punished with strict actions from the governmental side.
Final Words:
Proper cum thorough verification of user and investor identities in the cryptocurrency exchanges and ICOs would help us avoid the annoying crypto crimes resulting in huge losses for the business system. Besides fraudulence, the rest is assured with the crypto transactions and the crypto exchanges are of course the better places for making secure transactions.
Hence as crypto entrepreneurs, we all need to raise our support in eliminating the hacks out of the system by adopting the viable online document verification services. By the way, we at shamla tech are working to meet your business compliance needs, thus helping you in shaping up the future of your exchange business.
Here is how we work for verifying the identities of your users:
Step 1: We check whether the information provided by the user matches exactly with the submitted ID proof documents.
Step 2: We check whether the submitted documents are the authenticated sources for user identity verification.
Irrespective of the location of your users, we verify their identities online. For instance, even if your users belong to some other countries, then it is absolutely possible for you to verify their identities with 100% accuracy via our digital KYC solutions.
So, come and embrace them to bring a scam-free crypto world filled up with the following benefits:
- Prevention from fraudulence and identity thefts:
E-KYC being a regulatory regime works right away in checking business for its security challenges like frauds and money launders. It requires the submission of overall details of the customers together with the photocopies of any one of their government ID proofs (driving license or voter id or passport or any others) to get verified for making authentic transactions in a business system.
- Paperless verification system:
E-KYC has come to replace the paper-based document verification procedure, thus making it easier for the entities to know their customers online. For this, the companies make use of a cloud-based online verification system, which accounts for the reduction in cost, unlike the normal KYC systems.
- Impossible for denials:
In the traditional KYC systems, there might be a chance for denials. But in e-KYC, it is impossible for a user to deny the process as it involves authentication from both the customers’ (bio-metric scan) and the service providers’ (digital signature) side.
- Consent-based verification:
When it comes to e-KYC, the customer needs to get the verification service of his own accord or consent, thus facilitating the protection of his fundamental right to privacy.
- Instant verification:
Since e-KYC is an automated online identity verification process, it does not encourage any kind of manual intervention. Here, the data transfers happen in real-time, thus making it a speedy process ever so that the customers get verified with their identity information instantly with e-KYC.
Moreover, this e-KYC verification procedure takes place and gets completed within just a few seconds or minutes of time.
- Transparency:
The storage of data and records in e-KYC enables us to trace back the issues raised at times of any kind of illicit or misuse. For instance, let us assume that illegal activity is performed in a business transaction. In this case, the transparency with e-KYC helps in restoring the original transactional records and data from the database thus accounting for the track of unethical hacks.
- Security:
The entire system of e-KYC is highly secure as it happens online. Thus, the users can enjoy the extent of safety they wish with e-KYC.
- Cost reduction:
The normal KYC requires the users to spend a lot of money as it involves some third-party interferences for the completion of verification. But with e-KYC, the users can save their valuable money since it never imposes any kind of additional charges other than the processing fee.
