The Dubai International Financial Center (DIFC) along with Mashreq officially announced the launch of the first blockchain KYC platform for data sharing in the country. The news from March 1st show that the platform will allow licensed businesses and corporations to open digital bank accounts instantly by verifying their identities via an internal blockchain.
The announcement is big in the blockchain latest news today. Mashreq will accomplish all of this by removing the existing paper-based KYC procedure and replacing it with a blockchain centric digital one. DIFC, on the other hand, prepares each new KYC record as part of a company’s corporate license application.
With the customer’s consent, the information is shared electronically with Mashreq via the blockchain. The result is the first blockchain KYC platform in Dubai which simplifies the process that companies currently go through when opening new bank accounts. Also, it makes it faster and easier for new companies to do business in the UAE.
A statement shows that the DIFC-incubated fintech firm Norbloc provided the blockchain platform (Fides) while Gowling WLG drafted the legal agreements. Finally, Deloitte supported Mashreq with governance and program management.
The first blockchain KYC platform has a legal framework too which is what made Mashreq Bank’s recent launch possible. The DIFC is one of Dubai’s independent free zones that offers companies 100% of their business ownership without the need of local partners. As the announcement reads:
“The program aligns with the UAE Blockchain Strategy 2021, earmarking the beginning of a journey towards a broader vision of forming a Consortium of Banks, Government Bodies as well as other Licensing Authorities, for seamless sharing of customer KYC data, thus leading to increased transparency, added security, and a better customer experience..”
All of this shows that the UAE has recently taken a lot of proactive steps towards crypto and blockchain as two evolving industries. In addition to this first KYC blockchain platform by Mashreq, several other blockchain based initiatives are also under development, including a digitized trade project known as the “Digital Silk Road” as well as the “Bank Trust Network” as a document exchange platform which is also set to be released soon.
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