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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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
Max Moeller is a Chicago‑based writer and video editor passionate about games, tech, and crypto. Whether it’s crafting clear, insightful articles or piecing together engaging video retrospectives, he’s driven by curiosity and takes pride in keeping things human. Since 2017, Max has been published in a variety of notable crypto magazines.
Contact Max: [email protected], reach out on LinkedIn or Youtube.
