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The Rise of On-Chain KYC

July 22, 2022



In the blockchain and cryptocurrency ecosystem there are still a number of issues, including blockchains almost crashing and potential scams and ponzi schemes, that bring a lot of uncertainty and risk to the market, some of which have been evidenced in our previous Blockpass blogs. Blockpass’ goal is to make the space safer by bringing regulatory compliance and identity standards so that fraudsters and criminals can’t capitalize on an unregulated area of finance and the many blockchain-related products that are launched in the space.

The Rise of On-Chain KYC

If you have been keeping up with the Blockpass blog you will have read about the increasing regulations and compliance legislations have begun to be put in place to regulate any businesses that are involved with cryptocurrency in markets worldwide.

In March 2021, the FCA added cryptocurrency organizations to the list of businesses required by law to submit to them a financial crime report. These new rules apply to organizations offering cryptocurrency exchanges and custodial wallet providers.

In the US, Know Your Customer (KYC) checks and Anti Money Laundering (AML) controls are required to create a compliant environment for any FinTech crypto exchange. Recently the EU has also been discussing new crypto regulations and finding vocal resistance from members of the crypto-scene; you can read more about that development in our article here

With these developments, it’s only a matter of time before KYC, AML and adequate compliance are going to expand to almost all blockchain-related projects, including NFTs. DeFi and crypto companies will want to mitigate money-laundering risk on the blockchain but there is a significant challenge for crypto or blockchain related projects to be compliant due to the many regulations around the globe and to conduct business in a way that suits both businesses and their customers. To avoid money laundering issues, brands and institutional investors in particular need compliance solutions. A trustworthy third party KYC provider is necessary to provide pioneering services that enable businesses to engage in blockchain identity verification and on-chain compliance checks without keeping data.

Thankfully, Blockpass is ready to help provide credibility and compliance to the participants and supporters in all these situations as it offers businesses a focused solution for On-Chain verification of users without collection of their personal data. Furthermore, by enabling compliant systems with appropriate KYC processes, Blockpass encourages widespread usage by legitimizing the industry.

The Blockpass platform is fully automated and hosted in the cloud, with no integration or setup fee. Businesses can sign up to the KYC Connect console in a matter of minutes, test out the service, and start conducting identity documents verification, KYC and AML checks. Sign up for FREE at console.blockpass.org.

By Courtney Lau