Protecting Digital Assets with KYC
Are your KYC protocols set up to protect your customers and your digital assets? With the digital world constantly evolving and new assets entering the market, ensuring that your due diligence and identity verification platforms are up to current regulations is essential for compliance, as well as optimal performance.
At iComply, we understand the integral role Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols play in preventing fraud, money laundering, and the accidental funding of terrorists or other illicit activities. Our modular suite of digital KYC compliance tools is customizable for your specific needs and makes it easy to stay on top of changing legislation and ensure your clients have the best protection available.
Below, we’ll cover the 3 core principles behind digital asset protection, as well as the benefits of partnering with a vetted provider like iComply for your financial crime compliance needs.
Why Digital Asset Protection Matters
As more and more assets are translated into digital form, having the right protocols in place to manage who has access to what is essential. With the financial market seeing a shift towards decentralization as blockchain-based currencies like Bitcoin and Ethereum grow in popularity, many other assets have begun to shift to digital safekeeping. Common examples of digital assets that need due diligence protocols in place for adequate security include:
- Financial assets (investments, stocks, bonds, cryptocurrency)
- Sensitive documentation
- Any additional asset that can be stored digitally and identified/exchanged for real-world value offline
The advent of digital acquisition and trade has led to the increasing development of regulations in major locations like Europe, with Germany introducing multiple laws and the EU as a whole looking to implement MiCA (Markets in Crypto-Assets) regulations as well. As online investors continue to look for the latest, most innovative ways to grow and protect their assets, KYC and CDD platforms must be prepared to deal with the unique demands of a decentralized customer base, as well as the ever-growing threat posed by criminals that seek to use such methods/assets for their own illicit purposes.
Core Principles of Digital Asset Protection
When it comes to protecting digital assets, there are three fundamental objectives that must be in place for companies to safeguard their clients’ interests. These principles include:
Digital assets must be protected against unlawful access points and parties. Whether dealing with standard investments or emerging crypto-technology, institutions that seek to house and distribute such assets should have digital protection top of mind at all times. In this regard, regulation compliance should be seen as an entry point to protection, not just a box that needs to be checked. Protection must evolve in tandem with legislation, trends, and emerging needs of your customers for optimal long-term results.
In addition to safeguarding assets, a viable platform must also make them accessible as needed to their clientele. Full-scale KYC programs play a key role in ensuring that organizations are able to safely and efficiently verify the identity of those wishing to interact with their platform and engage in the exchange of goods and services in a legal manner.
Finally, digital asset managers must ensure that every level of their institution and practice is fully compliant with any and all jurisdictional standards, from identity verification to record-keeping and everything in between. Such measures are put in place to significantly reduce the chance of fraud, money laundering, and other criminal behaviour — failure to comply can lead to hefty fines, reputational damage, and significant repercussions for your customers.
Ensure Digital Asset Compliance with iComplyKYC
At iComply, we understand the importance of ensuring digital asset platforms have the appropriate protections in place. Our modular suite of KYC products makes it easy to tailor your workflows to your requirements, including standard CDD, EDD, continuous risk monitoring, and more. With fast and efficient results you can trust, iComplyKYC allows you to focus on the ins and outs of running your business while reducing the cost of running ID verification and KYC protocols by up to 80%. When it comes to digital asset protection, iComply is your trusted source and leading choice for KYC software and electronic identity verification in the US, Canada, and the UK.
Book a demo with our team today to learn more about iComplyKYC’s range of solutions, and how our platform can be customized to fit your organization.
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Regulatory actions and industry updates from financial authorities and regulators around the globe in Q3 2022
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