KYC is vital in the fight against money laundering and terrorist financing. The trouble is, good KYC can be expensive.
The best solution for DeFi protocols is to work alongside providers who can deliver high-quality decentralized legal platforms such as Astra Protocol.
In traditional finance platforms, KYC is the first and often best line of defence against money laundering and fraud. Until recently, due diligence and anti-fraud mechanisms have been conspicuous in their absence from DeFi platforms. There is a settling period with new financial technologies where users, developers, and investors balance innovation, security, and impressive returns. Arguably, the area that has been lacking is security. Users have seen remarkable interest rates from lending and borrowing platforms offer yields substantially higher than traditional banks. However, with very little consumer protection, terms like the “wild west” of finance have been thrown around the crypto world.
By enforcing regulations on all DeFi platforms, we place a substantial financial burden on these companies — which might be too much for some smaller protocols. Major institutions can spend a staggering $500 million on KYC processes annually. Most DeFi protocols wouldn’t need to spend quite that amount yet; nevertheless, many would struggle to afford adequate due diligence at all. Underpowered or weak KYC processes are an expensive waste of time as criminals will quickly get around these legal speed bumps, and fraud will persist.
Using Astra Protocol for KYC is a win-win for DeFi organizations.
First and foremost, our technology delivers decentralized KYC from the best experts worldwide. Next, users get a high-quality, flexible service with an appropriate level of security for any given transaction. And finally, Astra provides a cost-effective solution that would be all but impossible to achieve without our service.
By using Astra, all DeFi protocols can comply with regulations without breaking the bank. Improving consumer protection is our top priority at Astra, so users and investors feel safe and the market can continue its incredible growth.