The identity verification provider Blockpass releases its latest service to help the crypto sector conform to new know-your-consumer (KYC) regulatory standards.
Blockpass’ new ‘Unhosted Wallet KYC’ allows companies to comply with new regulatory laws due to come into force next year.
Unhosted or ‘non-custodial’ wallets are those for which individuals, rather than financial organisations, control the keys.
Bussiness-managed wallets have historically been prone to fraud, terrorist financing or other illicit activities. To avoid such an inherent risk, many prefer to keep wallets under their own control.
To combat these risks, regulators are developing KYC controls for unhosted wallets that verify wallet ownership.
In anticipation of a more regulated crypto market, Blockpass has developed the first Unhosted Wallet KYC solution.
The solution allows business customers to ensure the compliance of withdrawals to unhosted wallets.
Users create and store a data-secure digital identity that’s applicable to an ecosystem of services, token purchases and regulated industries.
For businesses and merchants, the company’s KYC and anti-money laundering (AML) software-as-a-service (SaaS) requires no integration or setup cost.
“The increasing trend of cryptocurrency regulation is something we’ve always known was coming and welcomed in order to see a stronger and more widely accepted crypto market,” says Adam Vaziri, Blockpass CEO.
“We’ve been closely monitoring the state of regulations worldwide in order to prepare, adapt and develop our products to meet or exceed upcoming regulatory standards before they impact businesses. We make sure everyone has time to adjust to new requirements.”
Blockpass continues to develop its digital identity protocol with updates and additions to improve its compliance capabilities.
The necessity for compliant decentralised finance (DeFi) projects alongside recent legal developments, has garnered interest in Blockpass’ on-chain KYC.
Right now, the solution is the only live zero-knowledge solution for crypto KYC. The Unhosted Wallet KYC solution enables blockchains and DeFi platforms with a compliance layer.
Through its work with Animoca Brands, Blockpass provides a service where the delivery of the verification result is provably sent and shown on a blockchain without sharing the underlying data.
This represents a significant step towards the future Blockpass hopes to bring about where identity verification can be proved without revealing personal information.