DeFi companies incorporating ID verification to make Web3 more secure

A number of decentralized finance (DeFi) companies are partnering with ID verification software firms to give customers security while preserving their privacy.

Permissionless identity verification firm 0xKYC and DeFi platform Hinkal Protocol announced a new partnership that will bring soulbound tokens – non-transferrable NFTs that can represent a person’s identity – to Hinkal Protocol’s operations.

The tokens use permissionless zero-knowledge proofs, which allows for the verification of a wallet without needing explicit consent from the owner or the need to share data with third parties. This can increase trustworthiness within Web3 and create a new model for privacy-compliant crypto trading, the announcement states.

Global RegTech startup and IDV and fraud prevention company iDenfy announced it is partnering with Web3 network software and real-time blockchain data company Syntropy. iDenfy will now be responsible for KYC and AML compliance through ID verification checks from Syntropy’s clients and partners.

The company uses blockchain to tokenize unused bandwidth which can become a resource that can be traded in real-time. The transactions will use Syntropy’s native ERC-20 token, $NOIA. Anyone has the ability to link their device to the mesh network and function as a relay point to transmit data, which allows for the construction of interconnected networks rather than a single private network.

iDenfy will automate KYC/AML compliance to improve speed and security. It uses face biometrics and liveness detection to verify identities. Its AML compliance checks can compare individual identities to watchlists and find negative news articles through internet crawling. Blockchain companies can develop risk profiles and link that data to a specific digital wallet address. It can also require reauthentication for high-risk transactions.

Centralized DeFi service provider, Penning, announced it is partnering with ID verification provider Shufti Pro to improve security for Penning Pay, a cross-border payment platform.

Shufti Pro can verify a person’s face in less than five seconds and can authenticate a wide array of identity documents globally.

“Digital asset service providers like Penning require state-of-the-art IDV solutions to offer the utmost security for their clients,” said Shufti Pro CEO Victor Fredung. “Through this collaboration, our client can offer a more secure digital assets landscape whilst upholding KYC, KYB, and AML regulations.”

Article Topics

0xKYC  |  biometric liveness detection  |  decentralized finance  |  face biometrics  |  iDenfy  |  identity verification  |  selfie biometrics  |  Shufti  |  web3