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 based mostly on blockchain know-how.
Trustworthiness of Information on the Blockchain
The AFCM has, along with the UAE’s Ministry of Financial system, launched a market innovation problem whereby members are anticipated to create a useful know-your-customer (KYC) blockchain system. The problem, in accordance with AFCM, is open to “enterprise-ready” fintechs and tech companies from the area and world wide.
Contributors are anticipated to create a platform that “allow[s] transparency and immutability,” in accordance with the AFCM. Such a KYC platform would, in flip, “permit monetary establishments to validate the trustworthiness of information current within the distributed ledger know-how (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 desires the profitable KYC platform to be based mostly 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 means of any such structure has the flexibility to be quicker, safer and extra environment friendly than present verification procedures.
AFCM added that such a system will seemingly supply higher information safety by guaranteeing solely approved individuals can entry the information.
Fixing Issues With Disruptive Applied sciences
In response to judging standards, a taking part fintech’s proposed resolution “should clear up the issue utilizing disruptive applied sciences.” The proposed resolution should even be related to the issue assertion and be suitable with native rules. Solely 5 fintechs will make it to the finals of the problem, which is predicted to finish on March 29, 2022.
Along with the UAE’s economic system ministry, the nation’s securities regulator, the Securities & Commodities Authority (SCA), can be listed as AFCM’s different strategic accomplice for this problem.
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