Crypto Firms Prioritize Accuracy as Fraud and Regulation Intensify

Crypto companies are shifting from “growth at all costs” to operational discipline, with 74% of platforms now prioritizing verification accuracy over onboarding speed, according to Sumsub’s fourth annual State of the Crypto Industry report. The findings highlight the increasing complexity of scaling in 2026, as fraud sophistication and regulatory scrutiny converge with the demand for smooth user experiences.

Source : Sumsub

Crypto companies are prioritizing verification accuracy over onboarding speed, with 74% of providers emphasizing precise KYC/AML checks. Rising AI-driven fraud and stricter regulations, including the EU’s MiCA and Nigeria’s VASP rules, are driving this shift. Firms are adopting biometric verification, blockchain forensics, and multi-layered security to mitigate risks. Compliance teams are becoming “license-ready” advisors, integrating AI analytics and scalable risk-based controls. 

Balancing compliance, fraud prevention, and user experience

Despite stable global fraud rates at 2.2% from 2024 to 2025, over half of surveyed crypto firms reported experiencing fraud at least once last year. Sophisticated threats, including AI-driven attacks, synthetic identities, and social engineering, are increasingly targeting exchanges, wallets, and payment platforms. To counter this, 57% of providers now emphasize AI-powered fraud detection, while 51% invest in advanced monitoring analytics.

Verification challenges persist, with false positives, slow onboarding, and poor user experience affecting 58–60% of companies surveyed. Nevertheless, Sumsub’s internal data shows improvement: pass rates rose to 94% across verification attempts, enabling millions of legitimate users worldwide to onboard successfully. Emerging solutions, such as Non-Doc and Reusable Identity verification, are helping platforms merge compliance with user convenience, reducing repetitive document submissions across services.

Regulatory maturity shapes crypto growth

The report also signals a global regulatory shift. Enforcement is now moving beyond broad frameworks to operational oversight, including Travel Rule compliance, stablecoin regulation, and VASP licensing. 

Platforms that integrate verification, fraud resilience, and onboarding efficiency into a cohesive system are better positioned to scale safely. Sumsub notes that “regulated maturity” will define winners in 2026, emphasizing reliable systems, automated controls, and transparent compliance as essential for sustainable growth.

Meanwhile, recent data indicate that violent robberies reached record highs in late 2025 and are projected to double again in 2026, driven by rising asset valuations and the ease of laundering stolen digital funds.