Anatoly Kvitnitsky, Trulioo’s vice president for growth told Cointelegraph in a recent interview, “The ability to verify documents and comply with anti-money laundering (AML) and know-your-customer (KYC) requirements is now a differentiator for crypto firms.”
What he is essentially saying is that as crypto-related firms do more cross-border business, those who are able to demonstrate a higher rate of KYC and AML compliance will be the most successful, especially amongst those who want to “exchange crypto to fiat or vice-versa compliance with regulatory requirements. “
Kvitnitsky commented, “It is a good idea to improve the crypto world’s approach to compliance, especially as exchanges become more and more common,” and he added, “Definitely something like document verification is very much a differentiator and that’s something we’ve seen a shift in the past two years or so. The crypto world is really looking at these solutions.”
His firm, Trulioo has recently launched a tool called EmbedID, a tool that embeds identity verification for KYC through an API. Its target audience is those tech firms with small compliance teams that need to a more automated than manual form of KYC and AML.
He said, “Regulatory jurisdictions also have different KYC and AML requirements, so it can be difficult to match the needed paperwork for each country.” He also remarked that the inherently international and borderless nature of crypto is perfect for Trulioo and its tools.
Firms that want to work more closely with regulators are going to have to adopt a more rigorous and mainstream approach to KYC and AML.
The regulations applied by different governments have been blurry to date, although they have increased crypto monitoring in their jurisdictions. The UK’s Financial Conduct Authority has asked local crypto businesses to register with it as a way of helping it to keep an eye on AML activities, while the Commodity and Futures Trading Commission of the United States has also said it will be launching a new regulatory framework soon.