Meeting the Challenges of Crypto

Fifty-five of the top 100 banks have invested in cryptocurrency or blockchain-related companies, with the largest investment at $380 million. This staggering amount of money gives a glimpse into how financial institutions are getting ahead of the competition surrounding crypto wallets. And, when you consider that nearly 9 in 10 Americans say they have heard at least a little about cryptocurrency, and 16% say they have invested in, traded, or used crypto themselves, you understand why both financial institutions and fintechs would be so invested.

The current crypto scene is all the more impressive in how it thrives, even amidst roadblocks like: 

• Slow account opening processes
• Frequently broken API connections
• Weak Know Your Customer (KYC) or verification protocols
• Multi-day account funding processes
• Potential risks of fraud

These challenges — along with regulatory needs and expectations on the horizon — undercuts much of the growth and success of crypto wallets. (Keep in mind that 15% of crypto investors and 22% of potential investors don’t trust any institution to regulate cryptocurrency.)

At the top of these roadblocks is addressing how crypto exchanges verify customer identities and accounts as a core part of Know Your Customer (KYC) and anti-money laundering procedures. To solve this challenge, MX predicts we’ll see more partnerships created between major exchange and wallet providers and those who specialize in digital account verifications. 

If you'd like to learn more about how to solve for current industry challenges in the crypto market, check out MX’s whitepaper, “Pains and Gains of Crypto”.