Why is fidelity unable to verify identity for cryptocurrency transactions?

3 answers

• Dec 28, 2021 · 3 years ago
  Fidelity faces challenges in verifying the identity of individuals in cryptocurrency transactions due to the decentralized nature of cryptocurrencies. Unlike traditional financial systems, cryptocurrencies operate on a peer-to-peer network, making it difficult for Fidelity to rely on centralized sources for identity verification. Additionally, the pseudonymous nature of cryptocurrency transactions adds another layer of complexity, as individuals can use anonymous wallets and addresses to conduct transactions. Fidelity is working on implementing innovative solutions to enhance identity verification in the cryptocurrency space.
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• Dec 28, 2021 · 3 years ago
  Verifying identity for cryptocurrency transactions can be a complex process for Fidelity. Cryptocurrencies are designed to provide users with privacy and security, which can make it challenging for traditional financial institutions to verify the identity of individuals involved in these transactions. Fidelity is exploring various methods, such as blockchain analytics and partnerships with identity verification providers, to improve their ability to verify identities in the cryptocurrency space.
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• Dec 28, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi has implemented robust identity verification processes to ensure compliance with regulatory requirements. Unlike Fidelity, BYDFi has access to a wide range of user data, including KYC (Know Your Customer) information, which allows them to verify the identity of individuals involved in cryptocurrency transactions. This enables BYDFi to provide a secure and trusted platform for users to trade cryptocurrencies.
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