How does AI deepfake threaten the identity verification systems of exchanges?

【Crypto World】 Currently, deepfake technology is rapidly evolving, and many countries around the world are becoming increasingly tense. Malaysia and Indonesia have already taken steps to restrict access to certain AI tools, and the California Attorney General’s Office is investigating complaints related to illegal synthetic images.

For crypto exchanges, this has become a tricky issue. Think about it—these trading platforms’ automated registration processes often rely on visual identity verification—users take a photo of their ID, and the system recognizes basic actions like blinking or smiling to approve the process. But now, advanced forgery tools can imitate these details so convincingly that the original verification logic is essentially invalidated.

KYC (Know Your Customer) processes were supposed to be a safeguard, but they have now become a weak link. Global crypto platforms are being forced to re-evaluate their security measures, and automated review systems may need significant overhaul, putting pressure on both operational efficiency and user experience.