Changpeng Zhao worries about malicious actors using deepfakes to bypass crypto exchange KYC requirements.
The rapidly advancing capabilities of artificial intelligence (AI) are posing significant challenges to the identity verification procedures of cryptocurrency exchanges, putting transaction security at risk.
Recent advancements in AI, particularly in generating deepfake identity proofs, have raised eyebrows in the crypto community as it simplifies document forging, potentially jeopardizing transaction safety on crypto exchanges.
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Binance is among the platforms sounding the alarm on this issue. On August 9th, Binance CEO Changpeng Zhao expressed his concerns via X (formerly Twitter), cautioning the crypto community about AI misuse.
Highlighting the gravity of the situation, Zhao pointed to a recent AI-created video of HeyGen's co-founder and CEO, Joshua Xu. This video showcased an AI-generated clone of Xu, eerily accurate in replicating his voice, facial expressions, and speech nuances.
Confirming the authenticity of this development, Xu explained:
Both of these video clips were 100% AI-generated, featuring my own avatar and voice clone.
The HeyGen CEO teased the public availability of this AI tool, which will empower users to craft their ultra-realistic digital avatars in a mere "two minutes."
This emerging tech's potential widespread access is of significant concern for crypto exchanges, especially ones like Binance that employ video-based Know Your Customer (KYC) protocols. Typically, users on these platforms are asked to provide a video alongside photo identification, such as an ID card or passport, clearly stating specific details. As per Binance's directive:
Please do not put watermarks on your videos and do not edit your videos.
As AI technologies continue to push boundaries, the cryptocurrency world faces yet another challenge in maintaining the integrity of its transactions. As deepfake capabilities become more sophisticated, crypto exchanges will need to stay ahead, innovating and implementing even stronger verification processes to ensure the security and trust of their user base.
