How Malta’s X-faces is using KYC as a strategic winner

As Malta continues to build its reputation as one of Europe’s emerging technology hubs, local startups are increasingly contributing to the country’s growing digital economy. Among them is X-faces, a Malta-based company developing artificial intelligence (AI) solutions for identity verification and fraud prevention in the iGaming industry.

Malta’s startup ecosystem is gaining real momentum. In 2025, it generated an estimated $4.2 billion in value, outperforming global trends as the worldwide average declined by 14%. The island has become one of the most efficient markets for early-stage investment, where startups attract competitive funding while retaining more ownership. Growth is driven mainly by fintech, life sciences, and digital technologies, reflecting a maturing and resilient ecosystem focused on long-term innovation.

X-faces focuses on a field that has become central to every digital business: identity verification. The company’s technology is particularly relevant to sectors such as iGaming, where operators face constant pressure to balance regulatory compliance, fraud prevention, and a seamless player experience. It applies AI and machine learning to enhance Know Your Customer (KYC) procedures. Its system analyses data and behavioural signals to distinguish genuine users from potential threats in real time. By combining security, accuracy and efficiency within a single, fully integrated platform, X-faces enables businesses to onboard legitimate users faster while identifying and blocking fraudulent or high-risk profiles before they cause harm.

“Digital identity is becoming the foundation of every online interaction,” says Co-founder and CTO Maksim Karandashov. “Our goal is to make verification systems adaptive to modern risks. KYC is no longer just about checking documents. It’s about understanding user behaviour and using technology that evolves alongside fraud tactics.”

Today, X-faces works with clients across Europe, where its technology has already shown excellent results in reducing fraud and increasing verified-user retention. In Romania, the company provides KYC solutions to Million.ro, one of the country’s well-known iGaming brands. The cooperation is now deepening as the platform prepares to launch a new project with X-faces integrated from the outset.

“KYC today is a strategic business tool rather than a formality,” adds Co-founder and Managing Director Aleksey Armach. “It enables companies to understand their users better, anticipate risks, and make informed decisions. When verification becomes seamless and intelligent, it supports growth while maintaining safety and integrity online.”

X-faces represents a new generation of tech companies, blending artificial intelligence, cybersecurity and data analytics to address one of the most pressing challenges of the digital era: trust.

What stands out in Malta’s current wave of technology ventures is their clarity of purpose. These companies are not experimenting for the sake of innovation; they are solving practical problems that affect businesses everywhere. It’s this pragmatic focus, rather than scale alone, that is quietly giving Malta a significant place in Europe’s wider tech conversation.