Mateo Villa: “Identity verification and regulatory compliance are key to dispelling myths in the crypto world.”
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Mateo Villa is a KYC Analyst at one of the most important centralized exchanges worldwide. With over 250 million users spread across the globe, Mateo’s responsibilities include meticulously reviewing cases that require manual checks, whether due to issues reading documents or problems during the facial recognition phase.
“It’s important to break the belief that the crypto sector is tied to illegal operations,” he says, while highlighting “the traceability and transparency of the blockchain” compared to other traditional systems.
Question: Could you briefly tell us about your professional background and how you came to specialize in identity verification at this major exchange?
Answer: I initially joined as a user support specialist, where I focused on resolving platform-related issues. Over time, new positions opened up and, as I’m always looking to grow and learn, I became very interested in the identity verification field. If we think of a traditional financial institution, identity verification is crucial for accessing any product or service; however, with digital platforms, we don’t have the physical presence of the client to confirm who they really are. That need to objectively ensure the user’s identity caught my attention. I applied, started an intensive training program, and was amazed by the variety of documents, features, and verification methods that exist globally. Additionally, contributing to making transactions increasingly secure in the crypto space seemed extremely interesting and motivating to me.
Q: How is the identity verification process carried out at your company? Is it completely manual, or does it rely on automated systems?
A: The onboarding process begins with an automated verification, handled by either external or internally developed tools. These tools review the validity and readability of the document, as well as the match between the photo and the data. If this initial check flags something suspicious (for instance, if the document isn’t clear enough, if the photo doesn’t match, or if certain data can’t be properly read), the case is sent to an analyst for a detailed manual review. This way, we ensure that even the most complex situations are resolved accurately and reliably.
Q: From your experience, what would you say are the biggest challenges when verifying identity and, by extension, in Anti-Money Laundering (AML) processes?
A: First of all, I believe it’s important to break the perception that associates the crypto sector with illegal or unreliable operations. In reality, when working with cryptocurrencies, there is a level of traceability and transparency that traditional banks don’t always offer. Nevertheless, we need to prove that transactions are carried out securely and that funds come from legitimate sources. That way, both users and regulatory bodies can trust that the proper standards and procedures are being followed. In this regard, dealing with documents from different countries, various languages, and the potential falsification of files are constant challenges. Our main role is to ensure the user is truly who they claim to be and that the funds have a lawful origin.
Q: Besides document verification, are there other tools or processes you use to monitor transactions and ensure their legitimacy?
A: Yes. At the exchange (and at most serious platforms), there are automated mechanisms to detect unusual fund movements. If a user typically handles, say, 10,000 euros a month and suddenly deposits or withdraws 50,000, the system raises an alert for the team to review. The same goes for crypto addresses previously reported for suspicious activities. Sometimes, these cases are resolved without issue, but in others, the user is asked to justify the source of the funds. This is essential for complying with regulations and proving that the transactions are entirely legal.
Q: So, do you define different risk profiles and review transactions based on those profiles?
A: Exactly. When a new user suddenly reports a very high volume, or when a regular customer shows unusual transactional behavior, manual verification is triggered. The regulations of the user’s country of residence also come into play. Sometimes, a user may get upset because they feel we’re questioning their integrity, but there are legal guidelines we must follow to protect everyone’s security.
Q: What do you consider the main obstacles in doing your job, especially with such a large and diverse user base?
A: Mainly the language barrier and the variety of documents. Although we use English internally, we sometimes work with users from China, the Middle East, or Africa, and each country has its own formats and requirements. Moreover, the source-of-funds validation in an AML process varies greatly from one country to another. In some places, a tax return is enough; in others, a bank certificate or a record of transactions is required. Finally, document falsification is something we fight against daily: we have to distinguish between provisional documents, altered ones, or those with manipulated data. Fortunately, we have global databases and technology that make detection and validation easier.
Q: How do you handle incoming funds from other platforms, and what happens if regulations change suddenly?
A: When the system detects a suspicious movement (or larger than usual) coming from another platform, an extra check is triggered. At that point, the user must prove the funds have a lawful origin, for example, by providing account statements from the platform where the funds originated. As for regulatory changes, they don’t take effect overnight. First, we receive a notice, then our procedures are updated, we receive training, and we go through evaluations to ensure we understand the new rules. Only then are those changes officially implemented.
Q: What is a typical day at work like for you?
A: It’s a workflow heavily dependent on the area you specialize in. Initially, you train in verifying basic documents: IDs, passports, driver’s licenses... Once you master those, you move on to more complex topics, such as reviewing unusual transactions or verifying the source of funds. A normal day involves analyzing profiles flagged for various reasons: documents that don’t meet requirements, amounts of money that are out of the ordinary, discrepancies between registered data and the user’s history... There’s also a lot of interaction with people: requesting additional documentation or clarifying questions, always seeking the balance between being empathetic and maintaining the rigor of the process.
Q: How important is compliance within this ecosystem?
A: I consider it fundamental, not only to comply with the law but also for reputation. Many people still view the crypto world with skepticism, and the best way to build trust is by demonstrating that we have fraud prevention and security systems on par with any traditional institution. Nowadays, cryptocurrency adoption is unstoppable; they’re becoming increasingly common as a means of payment and savings. Therefore, compliance is crucial for instilling confidence in users and regulators alike.
Q: How do you see efforts to harmonize regulations across different jurisdictions? Sometimes it seems complicated to unify criteria among so many countries…
A: It’s complex because each country has its own identity documents and regulatory frameworks. However, there’s growing discussion about creating a common foundation or universal standard to validate people’s identities and funds in a more uniform way. This would significantly complicate the lives of fraudsters and foster a greater sense of security. I believe that, while it’s a slow and demanding process, the entire ecosystem is moving toward more consistent global regulation.
Q: Do you think recent regulations or the rise in some cryptocurrency values are attracting more users to the ecosystem?
A: In my opinion, the increase in users isn’t as tied to regulation as it is to people’s interest in investing and adopting new technologies. Many are no longer just curious about crypto; they see it as a necessity, especially in areas and services where you can only pay with digital assets. So, bit by bit, it’s becoming integrated into daily life. That said, regulations do provide a protective framework that makes the public feel safer.
Q: What is your vision for the future of the crypto world and its verification processes?
A: I firmly believe adoption will continue to grow. In some countries, it’s already being used on a large scale; in others, it will take off over time. Our role is to ensure that expansion is secure, legal, and trustworthy for everyone, including authorities. We’re going to keep improving technology and verification methods, regardless of how many users or transactions there are. The more people join the ecosystem, the greater the responsibility for the platforms and for those of us working in this area to keep everything running in an orderly, transparent, and secure manner.
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