Velix.ID — a RegTech Blockchain startup, working in the Identity Verification Space — is partnering with Cryptocurrency Exchanges in India to improve upon the existing KYC processes. The initial cryptocurrency exchanges to confirm the partnership with Velix.ID are Coinsecure & Bitxoxo, two of the largest Bitcoin exchanges in India.
On the partnership with Velix.ID, Mohit Kalra, the CEO of Coinsecure, said:
“The current process of KYC and identity verification is too troublesome and tedious for us as a Cryptocurrency Exchange and a cause of significant loss of business. I personally believe that with Blockchain Technology, this process can be improved upon drastically. When the idea of Velix.ID was presented to me, I was left impressed with the idea and the technical soundness of the execution plan. In fact, I wholeheartedly believe in —not just the idea— but the actual ability of the Velix.ID team to be able to execute this project successfully”
The current procedures of KYC are a cause of major concern for both the Cryptocurrency exchanges and their customers causing a significant business loss for the exchanges.
There are multiple faults in the contemporary KYC methods that make the process of signing up on the exchanges very inefficient:
Too time consuming: It takes a least of 3 days to 5 days normally for an individual KYC process to be completed at the moment with any exchange. There are huge backlogs with many cryptocurrency exchanges because of the pending KYCs, which is causing huge business loss on daily basis for the exchanges.
Loss in Customer Acquisition: The requirement to sign up with basic information, then make copies of your identity documents, uploading them, and then waiting for the verification process to be completed is a discouraging process for the Users, and incurs a loss in customer acquisitions for the businesses.
The Velix.ID Solution: Revamping KYC
The Velix.ID Ecosystem is a decentralized solution to the KYC problem. As a business partner, the exchange can simply request the verified identity of the User over the Velix.ID blockchain from a business/authority that has already verified it. This Verified-Identity Provider can be the User’s bank, another cryptocurrency exchange, or any other authentic organization from which the exchange is willing to obtain the identity from. This transaction is carried out in a secure, efficient, and private manner utilizing technologies such as Smart Contracts, Stellar Consensus Protocol, zSNARKs, HD Wallets (BIP32), and PoeT. This transaction of identity using Velix.ID is blazingly fast as the transaction is verified through multiple nodes on the Velix.ID blockchain, who are rewarded for these transactions.
Velix.ID offers free verification stamps to the business partners so that they can test out the Velix.ID Ecosystem to see if their business costs improve with the Velix.ID improved KYC process. Other than the already secured partnerships with Coinsecure and Bitxoxo, Velix.ID is currently in talks with all major cryptocurrency exchanges in India for their KYC processes.
The KYC process is, however, only one of the many use-cases of Velix.ID Ecosystem in the Identity Verification space, which covers many industry verticals including cryptocurrency trading, real-estate, Travel & Hospitality, Banking & Insurance, Employment, Commerce, Transport.