Information Technology
Coining 2024 'A Year Of Onboarding', Sumsub Report Predicts 2025 To Intensify Crypto Infrastructure Needs
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As the industry navigates a pivotal period of growth and regulation, the report identifies three critical challenges that crypto providers faced in 2024 and should address in 2025 in order to succeed: security threats, technology capabilities, and regulation.
Sumsub's data reveals that in the crypto industry has gone , now making up of all verification attempts across global crypto platforms. This surge highlights the need for companies to adopt AI-powered detection, biometrics, and continuous monitoring to enhance security. Nigeria recorded the highest rate of fraud across the crypto sector, with of verification attempts flagged as fraudulent.
The most popular fraud types are document forgery (affecting of surveyed companies), phishing ( ) and money mulling ( ), followed by account takeover ( ) and forced verification ( ).
Innovations like biometric checks, AI-backed automation and document-free verification have boosted crypto platform users' and , overall improving customer onboarding while reducing drop-off cases.
The report highlights notable innovations like which has enhanced verification times in every country where it was implemented, with an average . The top-three countries with the fastest non-document user onboarding speed of are and .
Document-free identity verification has already gained adoption by of surveyed companies worldwide, with Africa leading the way at 27%, showcasing the region's openness to innovative solutions.
The key user onboarding that crypto providers aim to mitigate include: slow verification times, which impact 36% of surveyed companies, as well as false positives/negatives (48%). Furthermore, over half (55%) of companies reported dissatisfaction with overall user experience.
According to Sumsub's Crypto Industry Research Survey 2024, companies foresee stricter regulations, emphasizing the need for proactive compliance upgrades. A key focus is the (FATF Recommendation 16), which urges VASPs to exchange sender-recipient information during crypto transfers. However, only of companies fully comply, with unclear guidance cited as a key barrier. The gap between legal requirements rendering global crypto transactions transparent and their disproportional adoption leaves many firms at risk of sanctions and fines.
The study also highlights Sumsub's analysis of the with well-defined regulations, strong infrastructure, and innovation-driven environments.
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To explore the report, please visit https://sumsub.com/crypto-industry-report/
* Note on Sumsub's research methodology
Sumsub is the #1 verification provider for the crypto industry working with top global crypto exchanges. With Sumsub's customizable KYC, KYB, Travel Rule, Non-Doc Verification, AML Screening, Address Verification, Crypto Transaction Monitoring and Fraud Prevention solutions, you can orchestrate your verification process, welcome more customers worldwide, maximize pass rates, meet compliance requirements, reduce costs, and protect your business.
With over clients across crypto, fintech, gaming, mobility and edtech industries, Sumsub supports the largest Travel Rule directory of virtual asset service providers (VASPs). Having integrated TRP, GTR (owned by Binance), CODE, and Sygna, Sumsub offers fully interoperable single communication Travel Rule protocol, which aims to automate data transfers, reporting, and transaction screening to improve compliance, security, and transparency.
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