Features of identity verification on crypto exchanges

Customer identification is a big problem today for technology companies, government agencies, and financial institutions. The crypto industry is no less urgent. On the one hand, you need to maintain the necessary privacy and protect user data from hacks and third parties, on the other hand, you need to do something with the growth of cryptocurrency fraud.

Verifying accounts on crypto brokerage websites is a very important process. Currently, checking your account in a crypto wallet is the third place in the list of parameters that you want to perform after opening an account, setting up two-factor authentication and creating a private key.

Sometimes, if you are on the platform and your account is not verified, then you will not be able to make a purchase or sale. Or for example, if you want to make a withdrawal of funds, then you can complete this process until your account is fully verified.

How does verification work?

Sometimes such verification processes are processed manually, and quite often it is the support service and department that are responsible for providing information about the necessary documents for verification to users.
Thus, in general, verification of the user ID is manually approved – in order to find out the true authenticity.

Basic platform verifications

In most cases, the procedures for verifying identifiers are quite similar on all exchange sites. The first thing to do is to fill out a form with basic information. But in order to move forward and switch to another type of account, an additional process of checking documents is required, such as providing a residence address, bank statement, billing address and more.

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Sometimes, in order to confirm some activity and log in to your account, you will need to solve captcha or the platform can send SMS to the phone with a code.

What to do if there was a delay with verification

The delay can occur for many reasons, for example, due to the process of manually checking applications. So if your application to verify your account freezes, this may mean that there is a pre-existing queue. It remains only to wait until your application for confirmation is accepted.

However, you should understand that each platform has its own rules for passing verification and a set of documents. For example, you may not have to wait to get the first level of verification on some exchange. Also, the level of identity verification you are applying for maybe the main reason for the delay. Or, each stage of verification on the site may have some limitations in how much you can do with your account until you get all three levels.

What is KYC?

One of the most basic international control standards is the KYC (Know Your Client) rule. His goal is to provide a potential client in a financial organization a package of documents containing regulated information about his personality.

The set of documents is standardized for legal entities and individuals, and its composition is determined by the nature of the forthcoming procedure.

What are the features of KYC?

The KYC system makes it possible to verify the identity of the client, allows the security service to determine the degree of risk of involving the client in illegal activities. In order to manage its own risks, it allows setting a filter that regulates the type and number of transactions for a specific user. KYC also enables platforms to track unusual client transactions and initiate an investigation if necessary.


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