Automatic ID system with HollaEx's premium KYC AML plugin
August 17, 2021
When it comes to registering a bank account or other financial service you might be asked to come to a branch or some office building in person to complete your registration process. This might mean you’ll have to queue up, and once it is your turn you will have to shuffle all the paperwork all at once, and perhaps you forgot a particular document? Well, that’s just bad luck. Get back in line. That’s still pretty much the experience for financial services, and what a big waste of resources it is for everyone.
Thankfully, because of crypto's global nature, waiting in a queue in person is not expected. However, this can make for a tougher job for both exchange operators to verify each and every individual's photos and countless docs from around the world.
To deal with countless identity verifications coming in from all directions, crypto exchanges had to innovate.
In fact, you can say the crypto industry was the first industry to push and adopt automatic KYC (know your customer) systems because it was one of the only ways the industry could deal with the sheer scale and diversity of user sign-ups. This is even more true during the bull cycles when prices are sky-high. You never want to stop users from coming in during the high times.
With the help of recent advances in image scanning technology, much of the manual KYC processes can be outsourced to specialized services.
These systems work by utilizing cameras on phones or PC and laptops, using smart face recognition algorithms that read the 3D topology of faces to make sure the person is real and that they match the documentation. The data is then cross-checked with various countries' ID formats to make sure with a high level of certainty that they are indeed legitimate documents.
All this sensitive data is also encrypted in transit and follow a special token system to make sure you and your users are safe every step of the way.
Automatic KYC also allows for better management of sensitive data with encrypted and safe storage, allowing operators to focus on their crypto platform and business.
HollaEx, with the premium automatic KYC plugin is now allowing exchange operators to take full advantage of these recent innovations in KYC tech right on their very own exchange!
The manual system for handling KYC on HollaEx white label exchange system however will still remain. And is an option for those that want to manage KYC and AML themselves, and/or don’t have access to the premium plugin.
But for those that want to reduce their operational workload while improving their user experience, the new automatic KYC system is now there for operators to activate (a one-time activation fee applies). After activation, operators can refill or ‘charge’ the number of user verifications that can be used on their exchange as they see fit.
Along with the new automatic KYC system, there will also be a revamp to the HollaEx Pro Exchange. Any users of the exchange or any budding exchange operator looking to test the KYC system can go to the official HollaEx Pro Exchange and use the system for themselves. The whole verification, if documents are on hand, only takes 5 minutes!
👷 Operator's view of the premium KYC Plugin
As an operator if you want to activate the new automatic KYC system for your exchange, you can do so by navigating to the KYC page on the dashboard, this, however, will be moved to your exchange’s Operator Control Panel in due time.
Simply, login to the dashboard, click ‘KYC’ on the left sidebar (under) ‘Customize’ and you will be faced with information on how to activate the automatic KYC plugin.
Simply click the blue ‘Activate’ button and select the number of user verification you’d like. These verifications are bankable and can be paid for and charged as you go.
Each time a user uses the auto KYC verification service they will be taken to a separate page to complete their verification. This can take 5 minutes as long (if ID documents are ready).
It is worth noting there is a one-time activation fee, after which exchange operators are only required to pay for user verification credits. A 13% discount can be obtained on the credits when buying bulk user verification credits.
Paying for verifications can be done with cryptocurrency, card payment or PayPal and follows a similar payment process as purchasing a cloud plan that can be found on the billing page. Once, directed to the billing page and the payment is complete, you will see the number of verification credits on the left of the auto KYC card, and a now active ‘Download Plugin’ button.
When you download the plugin you will receive a JSON file. To install the plugin on your exchange you should log in as an administrator on your exchange, navigate to ‘Plugins’ and click ‘My Plugin’ tab then click the green button 'ADD THIRD PARTY PLUGIN' and upload the JSON file. This will activate the plugin so that users will be taken to the new automatic KYC page instead of manually uploading files.
How does it look on a user's profile page? Pretty much the same. When you go to your operator control panel (blue admin) as an exchange operator you’ll be able to see the ID data uploaded from your users in the same place as it would be if you were to use manual KYC. Instead, it is now securely stored with the new KYC system.
As an admin of the exchange, you will be able to override the verifications (accept or reject) of the information as well as add notes for rejections.
An added benefit of using the automated KYC system is that it has an inbuilt AML check system. You also can avoid unnecessary operational complexity when it comes to storing sensitive data, leaving you with fewer things to worry about.
Once all is set the Automatic KYC plugin will replace the manual KYC plugin, in other words, there can only be one KYC system active at a time, either automatic or manual KYC system.
👱 The user view of the new KYC system
For users, they will have an enhanced verification experience that is 5x faster user experience, that is much less cumbersome.
As a user going through the automated verification, you will be taken to a specially designated KYC page where you are asked to select the type of document you have to submit. You can then use the camera on the phone or computer and it will automatically upload it. This could be a passport, driver's license, or government-issued ID depending on the country selected in the first step.
After uploading the document a user will be asked to show their face with instructions on how to position themselves best for the camera. This step is done in 10 seconds, after which they will be required to wait for a few minutes while their information is being processed. From a user perspective, they are done and can return at a later time to their account being fully verified.
If there are issues with the process, the system will automatically request for the user to do the process over.
Overall the speed and accuracy of an automated KYC system are leaps and bounds ahead of a manual KYC system and provide a better overall user experience that is standard for most crypto exchanges today.
🛡️ New user account level tiers on HollaEx Exchange
HollaEx Pro Exchange user accounts will also be getting a revamp. Instead of 10 account-level tiers, they will be consolidated into 5, making for a simpler to follow fee and limit structure as well as clearer requirements to obtain higher account-level tiers.
Just like most other crypto exchanges, to obtain higher account tiers basic verification is required and after which they can be upgraded into Silver, Ruby, Diamond, VIP trader, and Market Makers account tiers, depending on trading volume and XHT balance amount.
Traders that want to obtain higher ranks are required to trade over a certain amount of crypto on the platform (detailed on the exchange) and/or should hold a balance of HollaEx Token (XHT).
XHT can also be used by exchange operators using the HollaEx Kit software to activate features on their exchange such as new coins and trading pairs.
To obtain the HollaEx Token (XHT), simply navigate to the XHT/USDT market and place a buy order with USDT.
Lastly, a special trading account tier for Market Makers is reserved for those that can help provide liquidity to the HollaEx ecosystem and requires the market maker to get in touch.
If you are a user of the HollaEx Exchange, go to the verification page and click proceed and level up your account tier by completing the KYC process.
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You can check out iDenfy to learn more about the automated KYC & AML plugin technology used in HollaEx white label exchange.
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