- What is Onfido?
- The need for automated KYC
- CoinDCX’s dedication towards a seamless user experience
The rise of an asset class comes hand-in-hand with the question of security. That is the next question every investor started asking answers for, as soon as the potential of the crypto space cemented itself in the Indian markets. As the safest cryptocurrency exchange in India, CoinDCX makes it a definite priority to make all its products and services, secure and compliant with industry best practices. Our security team is conducting regular research on various security measures to keep us shielded from any attacks. To read about the processes one should follow to avoid any scam attacks from our in-house security expert, read “How does CoinDCX keep user funds safe with BitGo?”
The mention of cryptocurrency and the possibility of CBDC from the RBI after the proposed Bill during the Budget Session 2021 nudged the investors and traders to recheck the security and compliance protocols their crypto exchanges are following. Simultaneously, during this time, our Support team started getting queries for the measures CoinDCX is taking to ensure our promise of a seamless trading experience. This article aims to answer how we have enforced our KYC compliance with Onfido to ensure we keep up with the promises made.
CoinDCX places particular importance on KYC verification for all its users’ safety and compliance. The organization onboarded Onfido, which provides complete automation of the KYC process. This enables the company to onboard new and old customers faster without compromising security. CoinDCX has a KYC process in place that ensures Tax Identification and Address verification documents are verified using AI as well as manual screening methods. Typically a KYC onboarding procedure takes up to 5 days, whereas CoinDCX has been maintaining a fairly low TAT timeline for its KYC verifications.
All you have to do is take a picture of your government-issued ID and a selfie. Once done, Onfido’s AI will verify the user’s identity by analyzing their photo ID. This process ensures that it is the legitimate owner and they are physically present while the verification is underway. Users can experience a safe onboarding experience as this process is designed to pick up even the most sophisticated fraudulent activities. As part of institutional KYC, we have a separate set of checks in place to obtain all requisite details of companies and to understand the real beneficiaries of the companies, who are further required to go through KYC & AML processes.
Why Onfido: Advantages of automated KYC
The acronym KYC stands for Know Your Customer. The implementation of this policy helps banks from being used for fraudulent activities. After the Budget Session 2021, the RBI mentioned all banks to keep certain policies, like KYC and AML, in place. This activity will also help the government come out with better-moduled regulations. Aiming towards keeping the entire investment journey of the userbase seamless throughout the implementation of government regulations, CoinDCX has always worked towards adding any steps necessary. Conduct manual KYC authentication is a lengthy process and mostly results in delayed onboarding of customers. Thus, Onfido was the AI-enabled platform, onboarded to speed up the KYC process while aiming to keep up with the government rules and regulations.
Sumit Gupta, Co-founder & CEO, CoinDCX, said, “Our users are at the core of every decision we make at CoinDCX and a streamlined user experience is very important to us. The #TryCrypto initiative is about providing helpful tools, lowering the barriers to entry, and providing access to the crypto asset class in order to enable mass adoption. By integrating Onfido’s technology we can not only simplify the KYC experience for users but also give our users peace of mind by providing the highest level of fraud protection. With experience working with some of the most ground-breaking, next-gen fintech brands in the world, Onfido’s innovative technology will enhance CoinDCX’s compliance, safety, security, and performance, ultimately bringing great benefit to our users.” Source: Onfido
Husayn Kassai, CEO and co-founder, Onfido said: “Businesses and consumers should no longer have to compromise on customer experience, conversion, privacy or security. The way forward must uphold all of these, especially as the world increasingly moves online. We’re proud to partner with an innovative company such as CoinDCX, helping the company streamline onboarding while meeting KYC requirements.” Source: Onfido
Further, CoinDCX has capabilities to screen users against global sanctions lists to weed out mal-actors and enable a safe trading environment for all users. Through this partnership with Onfido, we take another step towards making crypto services more accessible to the Indian market, while increasing our security measures and decreasing the time required for you to start your investment journey!