The post Modern fraud prevention measures stifle crypto market growth appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. The number of cryptocurrency users on the global market has reached approximately 425 million or about 8% of the world’s connected population (est 5.44bn). That number, while impressive, falls far short of the optimistic adoption estimates investors were touting just a few short years ago. Crypto.com, for example, predicted a market in excess of one billion users back in 2022. A slow-growing user base has hurt the value of cryptocurrencies. The reduced liquidity of smaller markets makes it harder for traders to execute large orders without impacting prices, which in turn tends to generate more volatility and makes investing in cryptocurrency a risky proposition for the masses. Markets run efficiently when they are full, as they create a more realistic market price. This also drives diversification opportunities, improves price discovery, and supports a larger selection of crypto tokens. A number of reasons keep investors away from cryptocurrency opportunities, including a lack of understanding of blockchain, security considerations, and regulation. However, one overlooked factor preventing more widespread adoption is the unrequired KYC protocols put in place to prevent fraud. The process for a new user to sign-up to an exchange should be simple, fast, and easy. You would expect to be able to buy cryptocurrency in seconds, using a credit card. That process, however, rarely works for new customers due to concerns of fraud. New users are systematically subjected to long and complex KYC processes, that include email and telephone verifications, captcha solving, picture ID verification, and face video capture. Transactions via credit card are not always allowed, and ACH transfers are limited to small amounts. Transactions are then often routed through 3DS, where they are unnecessarily rejected…

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Filed under: News - @ July 6, 2024 1:20 am