Crypto platforms prioritise verification accuracy as fraud risks intensify
Sumsub research shows crypto firms prioritising verification accuracy as fraud risks and regulatory scrutiny increase across global markets.
Crypto companies are shifting their priorities from rapid user growth to stronger identity verification and compliance controls, according to new research released by Sumsub. The report highlights a structural change in how digital asset platforms approach onboarding, risk management, and regulatory readiness.
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The fourth annual State of the Crypto Industry report examines how platforms are responding to rising fraud threats and tightening regulations. The findings suggest that verification accuracy and operational discipline are becoming central factors shaping the industry’s next stage of growth.
Accuracy overtakes speed in crypto onboarding priorities
The report finds that 74% of surveyed crypto providers now prioritise verification accuracy over onboarding speed, which was selected by 39% of respondents. This shift reflects increasing regulatory scrutiny and the operational risks associated with weak identity checks.
According to the research, identity verification has evolved from a simple onboarding gate into a core product capability. Platforms are increasingly expected to balance fraud prevention, compliance requirements, and user experience within a single operational framework.
Andrew Sever, Co-Founder and CEO at Sumsub, said: “Crypto has entered a phase where operational discipline matters more than momentum. In 2025, the conversation shifted from ‘How fast can we grow?’ to ‘How well can we scale under scrutiny?’ Regulatory execution, fraud resilience, and onboarding efficiency are no longer separate challenges—they’re interconnected systems problems. In 2026, sustainable growth will belong to those who build reliability into the core of their product and infrastructure from day one.”
Industry data suggests these changes are already affecting verification outcomes. Global pass rates increased to 94% of verification attempts in 2025, up from 93% the previous year, indicating that platforms are improving their ability to distinguish legitimate users from fraudulent activity.
Fraud pressure grows across Asia-Pacific markets
While global fraud rates remained stable at 2.2% between 2024 and 2025, the regional picture shows sharper changes. Fraud in Asia-Pacific rose to 3.3% in 2025, a 65% increase compared with the previous year.
The report attributes this rise to fraudsters targeting fast-growing digital asset markets and exploiting operational gaps created by rapid product expansion. More than half of surveyed crypto providers now prioritise AI-powered fraud detection, while 51% are investing in advanced monitoring and analytics systems.
Fraud exposure also appears widespread across the sector. In Asia-Pacific, 63% of surveyed companies reported experiencing fraud at least once during 2025, while 13% said they were uncertain whether an incident had occurred.
Modern fraud operations increasingly combine multiple techniques, including social engineering, synthetic identities, and coordinated networks designed to bypass identity verification controls.
Regulatory enforcement reshapes crypto operations
The report also highlights a broader regulatory inflection point for the crypto sector. Governments and regulators are moving from high-level policy frameworks toward operational enforcement of compliance requirements.
These developments include expanded Travel Rule obligations, stablecoin oversight, and licensing requirements for crypto-asset service providers. Many platforms are now redesigning onboarding processes to accommodate stronger customer due diligence and anti-money laundering checks.
In Singapore, expanded regulatory expectations include requirements such as identity verification, sanctions screening, and compliance with Travel Rule standards. Authorities have also introduced rules to ensure that at least 90% of customer assets are held in cold wallets.
Ilya Brovin, Chief Growth Officer at Sumsub, said: “Regulated maturity means building better systems, not just adding more rules. The platforms that win will be those that embed verification into their product DNA and wrap automation in strong controls, transparency, and accountability. In the era of AI agents, the central dilemma is how AI-powered verification vendors continuously outmaneuver AI-driven fraud without eroding user experience or auditability. Those who solve this dynamic won’t just meet regulatory expectations — they’ll define the next standard of trust in crypto.”
The findings suggest that crypto platforms are entering a phase where growth depends less on user acquisition speed and more on their ability to manage compliance, fraud detection, and user experience simultaneously.
