Blog
Diverging Approaches in Europe and the US
The stance of the US and Europe towards blockchain and cryptocurrencies has been varied for a while but recently these differences seem to be growing even more pronounced. Whilst the stance of the US may crack down on immediate issues caused by malicious actors or incompetence, it risks losing out on the many benefits that blockchain technology can bring.
At a time when the US is seeing crypto exchanges leaving following issues with regulatory uncertainty and charges being levied against others (some deservedly, some maybe not), developments in Europe are taking place that are much more positive towards blockchain and crypto. These developments have the opportunity to revolutionize aspects of many industries, though the main focus is financial applications.
One example of this can be seen this week,with Swedish bank Skandinaviska Enskilda Banken AB (SAB) and French bank Crédit Agricole CIB announcing a blockchain-based digital bonds platform. Called ‘so|bond’, the platform will be designed to provide efficient and up-to-date data to issuers in the capital markets ecosystem thanks to the use of digital bonds on a blockchain-based system. As a sustainable and open platform, so|bond would provide a secure and transparent space that could enable real-time updates and utilize smart contracts to foster greater opportunities for its users.
Perhaps most interestingly though, so|bond is designed to promote an environmentally-friendly approach to blockchain technology, with the two banks announcing it will be run on a new ‘Proof of Climate awaReness’ protocol. Many crypto and blockchain projects have suffered in the public eye due to associations with inefficient, energy-heavy consensus algorithms at a time when climate change is a key concern to the world. Despite the efficiencies and economies blockchain can bring in other ways, the stigma of environmentally unfriendly systems holds back the adoption of blockchain-based solutions. According to SAB and Crédit Agricole CIB, ‘Proof of Climate awaReness’ protocol has a similar energy consumption to traditional options and also incentivizes its participants to lower its carbon footprint with monetary rewards as the companies aim to promote green energy use.
A spokesperson from SAB commented that the bond was the banks’ first steps into this space with more to follow, with a representative from Crédit Agricole CIB adding that the bank sought to better respond to an evolving regulatory climate. Whether in the US, Europe or any other country around the world, Blockpass is perfectly positioned to assist in meeting existing and upcoming regulatory requirements. Blockpass provides safe, secure and efficient regulatory solutions with a focus on the privacy of user data. Anticipating and preparing for regulatory updates, Blockpass had the first Unhosted Wallet KYC solution on the market and constantly monitor regulatory updates from around the world to ensure customers are prepared.
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. Take a look at Blockpass' groundbreaking crypto compliance solutions:
KYC CONNECT®
- Built-for-Crypto, centralized off-chain KYC platform
- Bank-grade KYC/AML
- No integration necessary, no setup cost
- Self-service and managed SaaS plans
ON-CHAIN KYC®
- On-chain, zero-knowledge verification KYC platform
- Customers complete KYCin an anonymous, data-free way
- Verification results delivered by API KYC / ID data oracle across multiple blockchains
UNHOSTED WALLET KYC™
- Only KYC solution for unhosted (or non-custodial) wallets in the market
- Adheres to the Crypto Travel Rule laws being adopted, reduces regulatory risk of transactions
- Verifies users own/control their crypto addresses
By Matthew Warner