Benchmark identity verification for crypto

Cryptocurrency verification platforms check identity through the Know Your Customer process (KYC). This process requires users to provide certain personal information, like proof of identification or a residential address. Cryptocurrency exchanges and other platforms that utilize KYC often employ crypto KYC providers to ensure a secure identification process. Providers like Sumsub offer advanced crypto AML/KYC frameworks that cross-check user-provided information against global databases to detect any potential risks.

The length of the crypto verification process can vary depending on the platform and the specifics of the verification flow. The onboarding process involves checking the validity of a transaction, which is almost instantaneous due to the decentralized nature of blockchain technology. However, for KYC verifications, it could take anywhere from a minute to several days—if done manually. This depends on the volume of requests the platform is handling at a given time, the completeness of the information provided by the user, and the effectiveness of the crypto check procedures in place

The KYC platform for crypto is any service that assists cryptocurrency exchanges, blockchain companies, or other related entities in conducting user verification. These platforms provide crypto AML/KYC solutions to ensure compliance with local and international regulations. They enable these companies to verify the identities of their users and minimize the risk of fraud and money laundering. The choice of a platform often relies on processing speed, accuracy of the solution, and customization options.

The Travel Rule is a crypto compliance requirement that obliges Virtual Asset Service Providers, or VASPs, to collect, verify, and share certain information about the sender and recipient of a crypto transaction. Its goal is to make crypto transfers more transparent and help prevent money laundering, terrorist financing, and other financial crimes.

KYT, or Know Your Transaction, is the process of monitoring and analyzing crypto transactions to detect suspicious, high-risk, or potentially illicit activity. While KYC focuses on verifying who a customer is, KYT focuses on what they are doing with their funds.

CARF isis an OECD standard for crypto tax reporting. It requires exchanges, wallet providers, and other crypto businesses to collect each user's tax residency information and Tax Identification Number (TIN) and report this data to tax authorities. Many jurisdictions began collecting CARF data on 1 January 2026. In the EU, similar rules have applied since 1 January, 2026 under DAC8.

Sumsub helps crypto platforms collect and check user’s tax data during onboarding with its TIN Validation solution. Here is how it works:

1. Add TIN collection to your existing Sumsub verification level
2. Let users enter a TIN for each country where they pay tax
3. Sumsub checks each TIN's format and checksum and flags invalid numbers
4. View results in the Sumsub dashboard or through the API to fix errors before reporting and keep an audit record.

TIN Validation covers 46 jurisdictions, including all 27 EU member states, the United Kingdom, and the United States.