Crypto Firms Prioritizing Compliance as AI Fraud Accelerates, Sumsub Co-Founder Says

Key Takeaways

• Sumsub’s Peter Sever said crypto firms are shifting away from “growth at all costs.”

• Sever warned that AI-powered fraud, including deepfakes and autonomous fraud agents, is evolving faster than the crypto industry can respond.

• Sumsub’s partnership with Chainlink aims to bring identity verification to institutional blockchain markets.

Crypto companies are increasingly prioritizing fraud prevention over rapid user growth as regulators tighten oversight, according to Peter Sever, co-founder of leading identity verification platform Sumsub.

“Before, the main things were verification speed and conversion rate — ignore all the rules, just onboard as many users as possible,” Sever told CCN on the sidelines of Consensus 2026.

“Today, the majority of companies prioritize verification accuracy.”

Sumsub provides identity verification and fraud prevention services to crypto exchanges, fintech companies, banks, and online marketplaces, helping firms comply with know-your-customer (KYC) and anti-money laundering regulations.

Regulation Reshaping Crypto Markets

Sever said regulators globally are becoming more aggressive about enforcement, particularly in Europe, where crypto firms face stricter licensing requirements.

“In Europe, let’s say everything is almost prohibited,” he said. “If you want to launch anything, you need to get this license, that license.”

He pointed to the “travel rule,” which requires firms to verify both senders and receivers involved in crypto transactions.

“There is a policy, but it’s really hard to follow. It’s impossible,” Sever said. “According to our recent ‘State of the Crypto Industry 2026’ Report, only 23% of companies are ready to comply with it.”

Despite concerns about regulatory complexity, Sever said institutional adoption of stablecoins and tokenized assets is accelerating.

“All those big guys understand how money works,” he said. “It’s clear that all the regulation that works for traditional finance are going to work for crypto.”

He said many crypto firms now regret not having established stronger compliance systems earlier in their development.

Sever noted that 72% of crypto firms told Sumsub they would change their internal compliance processes.

Partnership With Chainlink 

The interview comes just the day after Sumsub announced a partnership with Chainlink, aiming to integrate identity verification into its blockchain-based compliance infrastructure.

Under the collaboration, Sumsub will provide identity verification services for Chainlink’s Automated Compliance Engine (ACE). 

This introduces a cross-chain identity framework that enables users to verify their identities across multiple blockchain networks with a single digital credential.

The rollout will initially support Ethereum, Arbitrum, Avalanche, Polygon, and Base.

“From day one, crypto was all about decentralization, access, and freedom,” Sever said. “But to make it work, you need to have trust.”

AI-Driven Fraud Emerging as Major Threat

Sever warned that AI is rapidly transforming fraud tactics across the crypto industry.

“Fraud is evolving faster than the industry responds,” he said.,” he said.

“Before, fraud was more about forging one single document, and it required expertise,” Sever added. “Today it’s democratized. It’s cheap, fast, and available to everyone.”

He said fraudsters increasingly use AI-generated identities, deepfakes, and automated systems to launch large-scale attacks against onboarding platforms.

According to Sever, traditional fraud prevention systems based on reactive enforcement are no longer sufficient.

“We have to build AI systems to fight AI,” he said. “We create the same things — AI fraud agents — but they play on our side.”

He said detecting AI-generated identities often requires advanced machine learning because visual inspection alone is no longer reliable.

Crypto Remains Vulnerable

Sever described crypto as one of the sectors most exposed to fraud because of the speed and irreversibility of blockchain transactions.

“Crypto is one of the industries most affected by fraud,” he said.

He cited a growing trend in France involving kidnappings targeting crypto holders. As of April, French authorities had reported over 40 cases in 2026 alone.

“Someone kidnaps you, pushes you apart, and of course, you give up everything,” Sever said. 

“They transfer your crypto through a mixer, and in one second, it’s clean money. There’s nothing you can do.”

By contrast, he said traditional banks are more likely to intervene in suspicious transactions.

“If someone tries to transfer $1 million from a traditional bank account, you’re probably going to get tons of calls from the bank,” he said.

Sever argued that the future of compliance lies in what he described as “invisible KYC.” 

This would allow firms to verify users passively using payment and behavioral data rather than requiring repeated document uploads.

He said the industry is moving toward systems that reduce friction while still maintaining compliance standards, with the company recently launching its ‘Sumsub ID’ solution. 

“I truly believe invisible KYC is the future,” Sever said.

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