United Arab Emirates (UAE)’s Ministry of Financial system has joined arms with the Arab Federation of Capital Markets (AFCM) to kickstart a problem that encourages fintechs to create a know-your-customer (KYC) verification system primarily based on blockchain expertise.
Trustworthiness of Information on the Blockchain
The AFCM has, along side the UAE’s Ministry of Financial system, launched a market innovation problem whereby members are anticipated to create a practical know-your-customer (KYC) blockchain system. The problem, in line with AFCM, is open to “enterprise-ready” fintechs and tech companies from the area and world wide.
Individuals are anticipated to create a platform that “allow[s] transparency and immutability,” in line with the AFCM. Such a KYC platform would, in flip, “permit monetary establishments to validate the trustworthiness of information current within the distributed ledger expertise (DLT) platform.”
In detailing its causes for launching the problem, AFCM, which is the guiding physique for exchanges and clearinghouses from throughout the Arab area, explains why it needs the profitable KYC platform to be primarily based on blockchain. AFCM mentioned:
Blockchain will permit for an accumulation of information from a number of authoritative service suppliers into one single, cryptographically secured database. KYC verification by way of any such structure has the power to be sooner, safer and extra environment friendly than present verification procedures.
AFCM added that such a system will doubtless provide higher knowledge safety by guaranteeing solely approved individuals can entry the information.
Fixing Issues With Disruptive Applied sciences
Based on judging standards, a taking part fintech’s proposed answer “should clear up the issue utilizing disruptive applied sciences.” The proposed answer should even be related to the issue assertion and be suitable with native laws. Solely 5 fintechs will make it to the finals of the problem, which is anticipated to finish on March 29, 2022.
Along with the UAE’s financial system ministry, the nation’s securities regulator, the Securities & Commodities Authority (SCA), can also be listed as AFCM’s different strategic accomplice for this problem.
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