Morpho Labs Crypto Platform Turns to Biometrics for KYC/AML

Morpho Labs is partnering with Shufti Pro to screen its potential backers. Shufti Pro is a provider of remote identity verification services, while Morpho Labs is best known as a developer of open-source blockchain programs.

The new strategic partnership specifically concerns investors who want to send cryptocurrency to fund Morpho Labs’ ongoing operations. Shufti Pro noted that many countries have passed stricter Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations for the cryptocurrency industry in the past few years, and its identity verification platform will help Morpho Labs comply with those new requirements. To that end, the company’s solution uses a combination of face and document recognition to match a selfie to the image on a photo ID.

Once someone’s identity has been verified, Shufti Pro will cross-reference the name with criminal watchlists and lists of sanctioned or Politically Exposed Persons to assess the level of risk they represent. The screening process will ensure that all of the cryptocurrency that gets sent to Morpho Labs comes from legitimate sources, and not from those who are trying to launder stolen funds. The actual watchlists are maintained by international regulatory bodies like FINTRAC, FATF, and AUSTRAC, amongst several others.

“We are excited to join hands with Morpho Labs in delivering state-of-the-art KYC and AML solutions for the crypto industry,” said Shufti Pro CEO Victor Fredung. “We believe this collaboration will mitigate the risks of identity and monetary fraud for Morpho Labs and will assist them in staying compliant with global KYC and AML requirements.”

The news indicates that Shufti Pro’s efforts to expand its clientele are starting to pay dividends. In October, the company entered into reseller arrangements with NetLync and Open Systems Technologies, and it was also listed on the Salesforce App Exchange earlier in the year. Shufti Pro currently provides identity services for more than 500 businesses around the world.

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(Originally posted on FindBiometrics)