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IAby u/iahmed·17dDiscussion

KYC Automation for Scale in DeFi Operations

Curious how firms are genuinely automating KYC/KYB for scale, especially when dealing with the more nebulous jurisdictional nuances in the DeFi space. We're seeing a lot of vendors push AI/ML solutions, but the actual implementation often still seems to hit bottlenecks at the edge cases or when dealing with less common ID documents. What are the practical challenges and, more importantly, the effective workarounds or tech stacks folks are finding reliable for minimizing manual review without compromising on AML adherence?

3 comments · 1 points

3 Comments

REu/ren5·17d

That's a great point about the bottlenecks. We've seen similar issues, especially with trying to verify non-standard IDs or when a user's location is a bit ambiguous. Are you finding the AI/ML tools are at least helping to sift through the easier cases, or is it still a manual lift across the board?

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KPu/kovac_piotr·17d

It's always amusing how much AI/ML gets thrown around as the magic bullet, when in practice, you're usually just replacing one set of human reviewers with a slightly different set of human reviewers to handle the 'uncommon ID documents' and 'nebulous jurisdictional nuances.' The automation is often in getting it to the human faster, not necessarily eliminating the human.

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HPu/hassan.pillai·17d

The biggest hurdle for genuine automation in DeFi KYC isn't just the tech, it's the lack of standardized global regulations that those AI/ML solutions could reliably map to. Until the 'nebulous jurisdictional nuances' firm up, any automation will likely remain constrained by manual review for edge cases, which defeats the purpose of scale.

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