More crypto platforms are turning to biometric tools—like eKYC, facial checks, and liveness tests—to fight fraud and keep users safe. With online scams and hacks becoming more common, exchanges are using new technology to verify identities and block criminals before they can get in.
Biometrics use things like your face, your voice, or your fingerprints to confirm who you are. For crypto companies, this has become an important way to stop people from stealing IDs or sneaking into accounts.
eKYC lets users verify their identity from home, without going to an office.
Face2Face checks your face against the photo on your ID to make sure you’re the real owner.
Liveness tests make sure a live person is in front of the camera—not a recorded video or a photo meant to fool the system.
Because digital attacks are rising, interest in these tools is growing. Trust Stamp, for example, is seeking approval in both the EU and the U.S. for a new crypto wallet that uses biometrics and quantum-secure technology. They hope it will offer stronger protection than traditional options. But the big question remains: Which type of wallet is the safest?
Understanding Crypto Wallet Security
Crypto hacks make the news all the time, so users want strong protection. To understand security, you first need to know what a crypto wallet actually does. A wallet doesn’t store your crypto—it stores your keys, which let you access your crypto on the blockchain.
There are several types of wallets:
- Hardware wallets
- Paper wallets
- Mobile or desktop apps
Hardware wallets are often seen as the safest. They work offline, like a small device or USB stick, and keep your private keys away from the internet. When you approve a transaction, the device signs it internally, so your private key never leaves the secure chip. Even though you connect to the internet for a moment to send a transaction, the key itself stays protected.
Biometrics and Hardware Wallets Can Work Together
You don’t have to choose between biometrics and hardware wallets—they can be combined.
Many hardware wallets now include fingerprint readers and secure chips. Some even operate air-gapped—completely offline—and use QR codes to sign transactions. With biometrics, users get an added layer of protection on top of strong offline security.
Both approaches have pros and cons:
- Hardware wallets keep keys offline, offering very strong protection.
- Biometric tools make it harder for bad actors to impersonate users.
But hardware wallets can feel complicated for beginners, and biometrics are not perfect either.
Why Many Support Biometric Security
Supporters say biometrics can address a growing problem: sophisticated identity fraud. Security experts warn that groups like North Korean cyber teams have already infiltrated many crypto companies. Reports say they have stolen more than $3 billion in crypto.
Biometrics make that harder. You can guess a password, but you can’t guess someone’s face or fingerprint. In multi-factor authentication, biometrics fall under the category of “something you are,” making them harder to fake.
Biometric systems work in several steps—capturing an image, extracting features, converting them into a digital code, and then matching that code again during login. Some systems store this data, which raises privacy concerns, while others convert it into secure cryptographic keys that are not saved anywhere.
Critics argue that biometrics are not always precise. False matches can happen, and users still need backup passwords. If someone copies your fingerprint, you can’t change it. That’s why some believe biometrics add convenience, not true security.
The Future of Biometrics in Crypto
Despite the debates, biometric tools are becoming a major part of crypto security. When combined with strong passwords and hardware wallets, they can create a safer and more user-friendly experience.
Whether you’re new to crypto or a long-time investor, biometrics are shaping the next generation of digital protection—making it harder for criminals to break in and easier for real users to stay safe.
