United Arab Emirates (UAE)’s Ministry of Financial system has joined palms 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 know-how.
Trustworthiness of Knowledge on the Blockchain
The AFCM has, along with the UAE’s Ministry of Financial system, launched a market innovation problem whereby individuals 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 corporations from the area and all over the world.
Members are anticipated to create a platform that “allow[s] transparency and immutability,” in accordance with the AFCM. Such a KYC platform would, in flip, “enable 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 needs the profitable KYC platform to be primarily based on blockchain. AFCM stated:
Blockchain will enable 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 sooner, safer and extra environment friendly than present verification procedures.
AFCM added that such a system will doubtless supply higher information safety by guaranteeing solely approved individuals can entry the information.
Fixing Issues With Disruptive Applied sciences
In line with judging standards, a collaborating fintech’s proposed resolution “should resolve 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 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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