RESTON, Va., Jan. 13, 2026 (GLOBE NEWSWIRE) — A study from Regula, a global developer of identity verification solutions, shows crypto firms rethinking login-based security — a change driven by the limits of multi-factor authentication (MFA) and the rise of AI-powered fraud.
The pressure behind this shift is already visible in the controls crypto firms rely on today. According to the study, just 28% of crypto respondents cite MFA as a primary identity or fraud control, followed by IP and geolocation analysis (25%) and dark web monitoring (23.6%). While widely deployed, these measures operate largely at the session or perimeter level — validating access signals rather than the identity behind them.
That gap is increasingly reflected in the types of fraud crypto firms are encountering. When asked which forms of identity verification fraud they see most frequently, respondents cite biometric fraud — including the use of fake or stolen biometric data — and document fraud involving counterfeit or altered documents, each named by 35% of respondents. The findings suggest that attackers are targeting both biometric signals and identity documents, rather than relying solely on traditional account compromise.
As AI-enabled fraud accelerates, the limitations of login-centric defenses are becoming harder to ignore. Synthetic identities, manipulated media, and AI-assisted onboarding techniques can now reproduce expected user behavior and device patterns, allowing attackers to blend into normal traffic without ever proving who they are — widening the gap between access security and identity assurance.
A turning point: From login security to identity certainty
The study points to a clear shift in how crypto firms think about identity risk. While return on investment (ROI) remains a dominant metric, teams increasingly recognize that identity assurance cannot stop at login. Verification is becoming a continuous process rather than a one-time checkpoint. As AI grows more adept at mimicking human behavior and reproducing seemingly legitimate interactions, one-off authentication is proving insufficient for high-value actions and compliance-sensitive workflows.
Against this backdrop, crypto platforms are beginning to rethink how their verification stacks should evolve by 2026. Rather than adding more point controls at the session level, respondents point to a small set of capabilities that operate deeper in the identity layer and help connect signals across systems.
Where Crypto Firms Are Investing in Identity Verification: Top Three Priorities
| Tool | Share of crypto respondents | What they hope it will bring |
| Biometric verification and authentication | 26.39% | Stronger proof that a real person is present and tied to the account |
| Human expert review | 22.22% | More careful handling of high-risk or high-impact cases |
| Orchestration of multiple IDV tools and scenarios | 18.06% | A centralized way to design, manage, and adapt verification flows |
Biometric verification is emerging as the core trust signal for crypto. Unlike credentials or devices, biometrics help confirm that a real person — rather than a proxy or compromised account — is present during onboarding and when high-risk actions occur. Over time, they also provide a more stable identity reference across the user lifecycle, reducing reliance on passwords and device-based controls that can be stolen, shared, or spoofed.
Orchestration is increasingly viewed as the structural change crypto teams need most. Today, many crypto platforms juggle fragmented systems for document checks, selfies, liveness detection, AML screening, and fraud analytics. This fragmentation slows decisions and introduces blind spots. Respondents point instead to unified, platform-based workflows that can connect signals across systems, streamline verification, and improve both security outcomes and operational efficiency.
Human oversight is returning — in a more targeted, high-impact role. Rather than maintaining broad manual review queues, crypto organizations expect expert review to be applied selectively to high-risk scenarios, such as large withdrawals, VIP accounts, or compliance-sensitive cases. Routine decisions are increasingly automated, while specialists focus on situations that require judgment and contextual assessment.
“Crypto has always operated in an environment where speed, scale, and anonymity intersect — and that makes identity one of its most critical control points. What we’re seeing now is a recognition that traditional account-level defenses can’t keep up with how quickly attackers adapt. The next wave of protection will come from deeper, more continuous identity proofing — biometrics, stronger document validation, and orchestration that connects every signal into a unified, trusted narrative of who the user really is. For crypto platforms, this isn’t just an improvement — it’s the foundation for operating safely in 2026 and beyond,” says Henry Patishman, Executive Vice President of Identity Verification Solutions at Regula.
Read the full analysis
The analysis explores these and additional aspects of IDV in the crypto industry in detail. Read the full breakdown on the Regula Blog.
About Regula
Regula is a global developer of forensic devices and identity verification solutions. With our 30+ years of experience in forensic research and the most comprehensive library of document templates in the world, we create breakthrough technologies for document and biometric verification. Our hardware and software solutions allow over 1,000 organizations and 80 border control authorities globally to provide top-notch client service without compromising safety, security, or speed. Regula has been recognized in the 2025 Gartner® Magic Quadrant™ for Identity Verification.
Learn more at www.regulaforensics.com.
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