United Arab Emirates (UAE)’s Ministry of Economy 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 technology.
Trustworthiness of Data on the Blockchain
The AFCM has, at the side of the UAE’s Ministry of Economy, launched a market innovation problem whereby members are anticipated to create a practical know-your-customer (KYC) blockchain system. The problem, in accordance to AFCM, is open to “enterprise-ready” fintechs and tech companies from the area and world wide.
Participants are anticipated to create a platform that “enable[s] transparency and immutability,” in accordance to the AFCM. Such a KYC platform would, in flip, “allow financial institutions to validate the trustworthiness of data present in the distributed ledger technology (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 this sort of structure has the flexibility to be sooner, safer and extra environment friendly than present verification procedures.
AFCM added that such a system will possible supply higher information safety by guaranteeing solely licensed individuals can entry the info.
Solving Problems With Disruptive Technologies
According to judging standards, a taking part fintech’s proposed resolution “must solve the problem using disruptive technologies.” The proposed resolution should even be related to the issue assertion and be suitable with native rules. Only 5 fintechs will make it to the finals of the problem, which is predicted to finish on March 29, 2022.
In addition to the UAE’s financial system ministry, the nation’s securities regulator, the Securities & Commodities Authority (SCA), can be listed as AFCM’s different strategic companion for this problem.
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