To gain a wider perspective, Digital Journal spoke with Zac Cohen, COO of Trulioo. In 2021, Zac anticipates a heightened familiarization with cryptocurrencies and additional Know Your Customer (KYC) compliance requirements as a result.
Digital Journal: What can we expect with cryptocurrencies during 2021?
Zac Cohen: 2021 will see a rise in cryptocurrencies as consumers begin to familiarize themselves with it as an alternative to traditional currency. As blockchain technology and digital assets continue to grow and be increasingly used, the sentiment and value around virtual currencies will rise. As users continue to expand their knowledge on virtual currencies like Bitcoin, these are likely to experience dramatic price movements. As we know, cryptocurrencies offer a sense of freedom as it operates on blockchain, and currently there is a lack of central authority, meaning little to no fees.
DJ: Will virtual currency usage increase?
Cohen: As virtual currency usage increases due to the pandemic, in 2021 virtual asset service providers (VASPs) will get tougher on using proper Know Your Customer (KYC) identification and authentication to ensure they can continue to grow into new regions to meet this growing demand.
DJ: How do these help?
Cohen: As VASPs educate themselves on how to build trust with users and eliminate opportunities for fraudsters by using proper KYC methods, the inadequate and traditional KYC method of taking selfies with documents will become less common. VASPs won’t start out small with KYC solutions, but rather will aim to be compliant in markets with the toughest regulations, so they then can meet the requirements nearly anywhere that allows crypto exchanges. As crypto exchanges span the world, this will also aid VASPs in expanding into new markets while ensuring they are compliant with the varying regulations in different regions. This increase in security not only protects customers and eliminates fraudsters, but protects the VASP brand from failing to meet compliance requirements.
