On-Chain KYC (Polygon ID) vs Traditional KYC Providers (Sumsub) for Off-Ramp Compliance

Zero-Knowledge Proofs (ZKPs): Users hold verifiable credentials (VCs) in a private wallet, proving compliance without exposing raw PII. This enables self-sovereign identity and reduces your platform's data liability. Ideal for protocols prioritizing user privacy and censorship resistance.

One-time verification, multiple uses: A single KYC attestation (e.g., from a DAO) can be reused across dApps via W3C Verifiable Credentials. Enables automated, on-chain compliance logic with smart contracts. Best for DeFi protocols needing to gate access based on verified credentials.

2,500+ document types & 220+ countries: Maintains extensive, updated databases for global ID verification and sanctions screening (OFAC, PEP). Offers < 30 sec average verification time. Critical for exchanges and fintechs needing rapid, reliable onboarding in regulated markets.

All-in-one dashboard: Bundles KYC, KYB, AML transaction monitoring, and fraud detection into a single API/SDK. Provides audit trails and certified reports for regulators (FCA, FINRA). Essential for traditional finance integrations and enterprises with complex compliance obligations.

Shift from per-check to infrastructure cost: After initial issuer setup, verification is a gas fee for on-chain proof validation. Eliminates per-user fees from traditional providers. Optimal for high-volume, low-margin applications or where user pays for verification.

Mature REST APIs & SDKs: Plug-and-play integration for web, iOS, and Android with extensive documentation and support. Handles the full document capture, liveness check, and data extraction pipeline. Fits teams needing a proven, operational solution in weeks, not months.

Zero-Knowledge Proofs (ZKPs): Users prove KYC compliance without exposing raw data. This enables self-sovereign identity and reduces custodial risk for your platform.

Native Web3 Integration: Verifiable Credentials (W3C standard) are portable across dApps. This matters for building decentralized finance (DeFi) or gaming ecosystems where user identity needs to be persistent and trustless.

Eliminates Recurring Checks: Once a user is verified (e.g., by a trusted issuer like Fractal), their ZK proof can be reused indefinitely, reducing per-user compliance costs to near zero.

Programmable Compliance: Rules (like jurisdictional limits) are enforced via smart contracts (e.g., on Polygon PoS). This is critical for automated, real-time compliance in high-frequency applications like DEXs or cross-chain bridges.

3000+ Document Types & 130+ Countries: Pre-built, constantly updated libraries for global AML/KYC regulations. This matters for rapid market entry and mitigating regulatory risk in traditional finance (TradFi) partnerships.

< 30 Second Verification: Optimized OCR, liveness checks, and database screenings. Essential for high-conversion user onboarding in consumer crypto apps and centralized exchanges (CEXs).

API-First SaaS: Drop-in solution with full audit trails, case management dashboards, and dedicated support. Reduces engineering burden for teams needing immediate, reliable off-ramp compliance.

Proven Liability Shift: Establishes a clear chain of custody for Personally Identifiable Information (PII), which is often a non-negotiable requirement for banking partners and institutional clients.

Early-Stage Ecosystem: Requires integrating with issuers (Fractal, Civic), designing credential schemas, and managing revocation registries. Significant upfront development cost.

User Friction: Users must manage identity wallets (like Polygon Wallet Suite). This can hurt conversion rates for mainstream, non-crypto-native audiences.

Recurring Per-Check Fees: Costs scale linearly with user base and verification frequency (e.g., $1.50-$5 per check). Becomes expensive at scale (1M+ users).

Walled-Garden Data: User data is siloed within the provider. Limits ability to build interoperable identity graphs or leverage verified data in on-chain smart contracts.

Zero-Knowledge Proofs (ZKPs) allow users to prove compliance (e.g., age, residency) without revealing underlying documents. This matters for self-sovereign identity and applications where user data minimization is a priority, such as DeFi or token-gated experiences. Credentials are stored in a user's wallet and can be reused across dApps.

Eliminates per-verification fees after initial credential issuance. This matters for protocols with high-volume, recurring checks (e.g., daily withdrawal limits). Integration with smart contracts via Verifiable Credentials (VCs) enables fully automated, on-chain compliance logic, reducing operational overhead.

Pre-built compliance for 200+ jurisdictions, including FATF Travel Rule, AML5, and specific crypto regulations. This matters for licensed exchanges and financial institutions requiring auditable, regulator-friendly processes. Sumsub maintains direct relationships with global watchlists and sanction databases.

Proprietary AI and liveness checks analyze document authenticity and prevent spoofing with >99% accuracy. This matters for high-risk, high-value off-ramps where synthetic identity and deepfake fraud are primary concerns. Provides a detailed audit trail for each check, which is critical for traditional compliance officers.

Relies on wallet adoption (e.g., Polygon ID wallet) and issuer trust anchors. This matters for mainstream users unfamiliar with crypto wallets. The ecosystem is newer, with fewer battle-tested integrations for complex, multi-jurisdictional fiat off-ramp flows compared to established providers.

Pay-per-verification pricing model can become expensive at scale (>$1 per check). This matters for high-frequency, low-margin applications. Creates data silos—user credentials are not portable, locking them to your platform and requiring re-verification for other services.