Why Biometrics is the New Weapon of Crypto Security?

Updated
December 1, 2025
Gambar Why Biometrics is the New Weapon of Crypto Security?

Jakarta, Pintu News – The adoption of biometric technology is increasing in the cryptocurrency industry as digital security threats surge. With the rise of cyberattacks, identity theft, and infiltration of crypto companies, various platforms have started to integrate biometric verification such as eKYC, Face2Face, and liveness detection to strengthen user security.

This approach marks an important shift in efforts to protect digital assets, especially as criminals become more sophisticated in exploiting online identity gaps. The increased interest in biometric-based crypto wallets also reflects the market’s need for stronger, faster, and more reliable layered protection.

Biometrics is the new pillar of user identification in the crypto industry

Biometric technology utilizes physical traits such as face, voice, or fingerprints to accurately confirm a person’s identity. This method helps prevent data misuse and reduces the risk of illegal transactions that often utilize fake identities.

On many cryptocurrency platforms, systems such as electronic Know Your Customer (eKYC) are used to verify users remotely without physical presence. This process speeds up onboarding and creates a stronger security foundation.

On the other hand, Face2Face technology compares an official ID photo with the user’s face in real-time, ensuring that the account really belongs to the rightful owner. Liveness detection is an additional layer to prevent spoofing, which is an attempt to use photos or video footage to bypass face verification.

This technology ensures that the subject of verification is present in person during the process. With the combination of these three methods, crypto platforms are attempting to close the various entry points that digital criminals often utilize.

Growing Interest in Biometric-Based Crypto Wallets

crypto biometrics
Source: Aratek Biometrics

Digital identity security is a big concern as cyberattacks in the crypto sector continue to rise every year. Companies like Trust Stamp are now going a step further by applying to EU regulators and the SEC for approval for biometric-based crypto wallets with quantum-secure protection.

The wallet is designed to store cryptocurrencies and stablecoins with a layered biometric verification mechanism, offering a combination of software and hardware security in a single device. The demand for this technology demonstrates the increasing risk awareness in digital asset ownership.

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Crypto wallets essentially store private keys, which are required to manage assets, sign transactions, and access decentralized applications. Various forms of wallets are available, ranging from hardware wallets, mobile wallets, to paper-based cold storage.

In some cases, the security level of hardware wallets is even considered to surpass biometric systems. Nonetheless, the industry is increasingly considering the integration of biometrics to add an additional layer of security without changing the basic design of asset storage.

Can Biometrics and Hardware Wallet Go Together?

In practice, biometrics and hardware wallets are not mutually exclusive approaches, but can complement each other. Some modern hardware wallets already support fingerprint authentication and come with EAL5+ certified security chips.

These devices keep private keys offline while providing ease of access through biometrics. Many of the latest products even support thousands of crypto assets and operate in an air-gapped manner using QR codes as a bridge of interaction.

Despite their high level of security, hardware wallets demand greater technical understanding from users. After setting up seed phrases, passphrases, and passwords, some users run deletion and recovery procedures to ensure that the wallet is truly secure.

This approach shows that convenience and security often clash. Biometric integration can offer a solution to keep devices secure but also easy to use for new users.

Security Debate: Are Biometrics Really Reliable?

The implementation of biometrics also has a controversial side. On the one hand, proponents of biometrics argue that the technology provides additional protection at a time when digital crime is on the rise.

Recent reports suggest that North Korea has infiltrated around 20% of global crypto companies through fake identities and the recruitment of shadow workers. The series of attacks has resulted in crypto losses of more than $3,000,000,000 according to US Treasury Department data.

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However, critics argue that biometrics only adds convenience, not absolute security. Biometric systems can produce false positives and false negatives, so a backup security in the form of a password is still required.

In addition, if biometric data is hacked, users cannot “replace” a face or fingerprint like changing a password. While some systems store biometric data in its original form, more advanced solutions convert it to a cryptographic format that cannot be reconstructed.

Conclusion

Biometrics are increasingly evolving from an add-on feature to a critical component in modern crypto asset protection. With the rise of digital threats and the complexity of attacks, the integration of biometrics alongside traditional technologies such as hardware wallets provides stronger layered protection. This multimodal approach shows that the future of cryptocurrency security will depend on a combination of technical innovations that can maintain user privacy, security, and convenience.

FAQ

Why are biometrics starting to be widely used on crypto platforms?

Biometrics helps prevent identity theft and ensures accurate user verification through physical features that are difficult to fake.

What is the function of eKYC in the cryptocurrency ecosystem?

eKYC is used to remotely verify user identity without physical presence, thus speeding up the registration process and enhancing security.

Why are hardware-based crypto wallets still considered so secure?

Hardware wallets store private keys offline so they are protected from malware, internet hacks, and various online attacks.

What are the biggest risks of using biometrics?

The main risks are irreversible leakage of biometric data such as passwords, as well as potential misidentification.

How do biometrics and hardware wallets complement each other?

Biometrics provide ease of authentication, while hardware wallets provide offline private key storage, resulting in a combination of security and convenience.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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