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ValidEntry pushes free biometric verification in wake of landmark EU crypto regulation

ValidEntry is now pushing a biometrics-based identity verification tool for crypto transfers, in the wake of EU legislators tightening up the requirements for vetting crypto transfers.

The latest MiCa (Markets in Crypto-Assets) legislation, which was unanimously approved by the finance ministers of the 27 EU member states on May 15, gives regulatory oversight to the future of cryptocurrency within the block.

Though the scope of the bill is wide, touching on everything from ‘stablecoins’ to the  environmental impact of bitcoin mining, in particular, it will increase the requirements in terms of verifying the identities of people making crypto transfers. This will be brought much more in line with those traditional bank transfers.

Cryptocurrency service providers facilitating transfers will now be obliged to collect data such as  the name of the originator and the originator’s distributed ledger address, or even their address and official personal documents.

In collecting this type of data, regulators say they are looking to cut down on issues such as the use of crypto for terrorist funding or for organized money laundering. It aligns the compliance regime with Financial Action Task Force (FATF) recommendations, which include biometrics for user onboarding and authentication.

ValidEntry, a provider of biometric identity verification solutions, has launched free no-code integration of its KYC services aimed at firms in the crypto and DeFi industry.

The company claims the solution provides a way to address the MiCa bill’s compliance requirements.

ValidEntry says its blockchain-based identity platform will enable crypto and DeFi businesses to verify customer identities without storing personally identifiable information (PII).

The firm says this enables an effective verification process, without the risk of customer privacy being compromised by data breaches.

More broadly, outside of the European Union, more firms are upping their KYC procedures as scrutiny on the industry remains strong.

Сryptocurrency exchange Cryptex has implemented a Know Your Customer (KYC) verification process for all new and existing users for the first time.

Users will now be forced to verify their legitimacy by entering personal information including their name, address, and identification documents, with the company saying the move is part of the company’s commitment to transparency and security.

Not all platforms are pushing for greater KYC. Canadian firm Bull Bitcoin has just launched ‘No KYC’ Bitcoin purchases.

Using a QR code generated by its app, users can buy up to  $999.99 worth of Bitcoin from a Canadian post office, in exchange for a flat fee of 2 percent, in addition to the Post Office’s cut. ValidEntry is now pushing a biometrics-based identity verification tool for crypto transfers, in the wake of EU legislators tightening up the requirements for vetting crypto transfers.

The latest MiCa (Markets in Crypto-Assets) legislation, which was unanimously approved by the finance ministers of the 27 EU member states on May 15, gives regulatory oversight to the future of cryptocurrency within the block.

Though the scope of the bill is wide, touching on everything from ‘stablecoins’ to the  environmental impact of bitcoin mining, in particular, it will increase the requirements in terms of verifying the identities of people making crypto transfers. This will be brought much more in line with those traditional bank transfers.

Cryptocurrency service providers facilitating transfers will now be obliged to collect data such as  the name of the originator and the originator’s distributed ledger address, or even their address and official personal documents.

In collecting this type of data, regulators say they are looking to cut down on issues such as the use of crypto for terrorist funding or for organized money laundering. It aligns the compliance regime with Financial Action Task Force (FATF) recommendations, which include biometrics for user onboarding and authentication.

ValidEntry, a provider of biometric identity verification solutions, has launched free no-code integration of its KYC services aimed at firms in the crypto and DeFi industry.

The company claims the solution provides a way to address the MiCa bill’s compliance requirements.

ValidEntry says its blockchain-based identity platform will enable crypto and DeFi businesses to verify customer identities without storing personally identifiable information (PII).

The firm says this enables an effective verification process, without the risk of customer privacy being compromised by data breaches.

More broadly, outside of the European Union, more firms are upping their KYC procedures as scrutiny on the industry remains strong.

Сryptocurrency exchange Cryptex has implemented a Know Your Customer (KYC) verification process for all new and existing users for the first time.

Users will now be forced to verify their legitimacy by entering personal information including their name, address, and identification documents, with the company saying the move is part of the company’s commitment to transparency and security.

Not all platforms are pushing for greater KYC. Canadian firm Bull Bitcoin has just launched ‘No KYC’ Bitcoin purchases.

Using a QR code generated by its app, users can buy up to  $999.99 worth of Bitcoin from a Canadian post office, in exchange for a flat fee of 2 percent, in addition to the Post Office’s cut.  Read More   

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