When it comes to the verification of customers, the situation has significantly changed in recent years. Due to the global development of technology and the shift towards digital solutions, the requirements and regulations around identity verification, KYC, and AML laws have changed.
Customer onboarding and KYC checks were only strongly associated with banks and financial institutions for a long time. Indeed, traditional banks and fintechs (such as neobanks, digital wallets, and online loan services) require reliable verification methods due to strict regulations and the high risk of money laundering. However, due to that change and a strong pull towards online services, the scope of sectors in need of digital verification solutions expanded.
An excellent example of platforms needing digital identity verification are cryptocurrency-related services, such as crypto wallets, crypto trading, and lending platforms. In recent years, regulators worldwide started to implement strict regulations, treating crypto platforms similarly to other financial services.