iDenfy: AI-Powered KYC/AML For Crypto Exchanges

iDenfy, a Lithuania-based RegTech pioneer in AI-powered KYC/AML solutions, has partnered with a prominent Czech-based crypto exchange platform, GlolinkOTC.

iDenfy will be responsible for ensuring a smooth transition to a fully automated approach to compliance, helping GlolinkOTC build a seamless verification process with extra features like adverse media screening, PEPs, and sanctions checks, as well as other compliance-related measures that help assess risks and ensure ongoing due diligence. 

Identity verification

The crypto industry has seen rapid growth, and this has brought significant regulatory challenges

The crypto industry has seen rapid growth, and this has brought significant regulatory challenges. Fraud and security breaches continue to rise, emphasizing the need for strong identity verification and compliance mechanisms.

In 2024 alone, USD 739.7 million in cryptocurrency was stolen during the first quarter. This highlights vulnerabilities in security measures. Therefore, as these threats grow, regulations around Know Your Customer (KYC) and Anti-Money Laundering (AML) become more critical.

Range of RegTech tools

According to iDenfy, the demand in the market and its partnerships with different industry players around the world show that not only ID verification but a more comprehensive hub of compliance tools is needed to address these challenges.

For this reason, for the past seven years, iDenfy has collected a wide range of RegTech tools, serving as a unique compliance service provider for multiple needs. According to iGlolnkOTC, this was an important factor when choosing a new vendor.

Crypto exchange platforms

The firm is offering a fast and frictionless affair for users who want to trade fiat coin for virtual assets

GlolinkOTC is a Czech Republic-based fiat-to-crypto and crypto-to-fiat exchange service company that specializes in omni-connecting large-scale virtual asset exchange platforms with other highly regulated crypto exchange platforms, including Binance, Bybit, OKX, HTX, Kucoin, Gateio, and Bitget. 

The company is offering a fast and frictionless experience for users who want to exchange fiat currency for virtual assets without the stress and delays associated with traditional marketplaces. What sets the exchange apart is its commitment to providing a seamless, transparent service without any hidden fees for users globally.

Advanced KYC and AML solutions

GlolinkOTC emphasized the importance of staying ahead of regulatory requirements as the crypto industry evolves. The company highlighted its decision to partner with iDenfy to implement advanced KYC and AML solutions, which will ensure the highest security standards while maintaining a smooth and efficient user experience.

Consequently, GlolinkOTC’s partnership with iDenfy enables a more secure onboarding process for its users. iDenfy’s identity verification solution now verifies government-issued ID documents within seconds, significantly reducing waiting times.

iDenfy’s suite of services

iDenfy’s suite of services includes AML monitoring, including PEP, sanctions, and adverse media checks

This two-step verification process, combined with real-time AML screening, ensures that the exchange adheres to all regulatory requirements while providing a smooth user experience.

Additionally, iDenfy’s suite of services includes AML monitoring, including politically exposed person (PEP), sanctions, and adverse media checks to prevent fraud and ensure that users are not engaging in illicit activities.

Various AML databases

iDenfy’s software automatically flags suspicious behavior and potential matches in various AML databases, simplifying the work for human analysts. 

Similarly, adverse media is screened automatically, filtering negative information from various news sites that are filtered automatically based on custom search criteria that GlolinkOTC can update on a user-friendly dashboard. This way, GlolinkOTC can ensure that the platform is immediately notified of any suspicious behavior, allowing them to act swiftly.

Integrating iDenfy’s technology

iDenfy’s software automatically flags wary behavior and matches in AML databases

“Our goal is to create a safe, compliant, and user-friendly environment for crypto and virtual asset exchanges."

"By integrating iDenfy’s technology, GlolinkOTC has taken a significant step toward ensuring the highest level of compliance while maintaining a seamless customer journey,” said Domantas Ciulde, the CEO of iDenfy.

Security and regulatory measures

It’s worth mentioning that the Financial Action Task Force (FATF) highlighted that cryptocurrencies are increasingly used in money laundering, terrorist financing, and other illegal activities due to their pseudo-anonymity and global reach, estimating that 0.24% of all cryptocurrency transactions in 2022 alone were tied to criminal activity, underscored the pressing need for enhanced security and regulatory measures.

iDenfy’s team expects that by 2025, these figures will change, likely reflecting increased security measures from various digital asset service providers. This shift will be driven by the introduction of new AML tools in response to the Travel Rule and other industry-specific regulations.