Electroneum (ETN) becomes the first KYC-compliant cryptocurrency
The world of cryptocurrency in recent years has addressed regulatory requirements through KYC compliance. These feelings go through the world of fintech as more and more users adopt digital currencies. Cryptocurrencies it will be more legitimate in the transactions carried out as the identities will be linked to the balances. This will eliminate the endless assumptions that the cryptocurrencies push for illicit acts all over the world.
Electroneum, the first mobile-based cryptocurrency, is intended to be the world's first KYC-compliant cryptocurrency after a partnership with Yoti Digital ID. The process will see Electroneum the addresses are compliant with Know your Customer (KYC) requirements by 12 Novemberth 2019, with the registration process of users already in progress.
Users will also be required to provide proof of their identity based on the amount of Electroneum coins in their portfolio, with more evidence required for high volume ETN holders.
Yoti Digital ID to improve KYC compliance procedures.
The KYC process it's usually a lengthy and time-consuming process that Electroneum fought hard to avoid that route. The digital asset company has partnered with Yoti digital ID, a RegTech company to offer the KYC process in a shorter, simpler and more efficient way for its users.
As is customary with the traditional KYC / AMRegulatory systems, the need to take self-portraits with their ID waiting or weeks before being verified, has been abolished by Yoti, which only takes a second to verify the user.
Yoti technology to conduct, Thom White he talked about the best features of the Yoti digital ID while he was talking partnership with Electroneum. He also explained the process to get the KTC requirements on the track.
First, users only need to create their Yoti once and then use it multiple times to prove their identity simply and securely. This development in the regulatory technology sector is set to encourage the cryptocurrency field to become part of Electroneum in providing digital ID users. Speaking of the partnership with Yoti, Richard Ells, CEO of Electroneum, noted,
"Working with Yoti and complying with KYC requirements is critical, and our business partners want us to demonstrate that our currency is used only for legitimate businesses, now we can, which means we can start working with these organizations to integrate the ETN as a form of payment ".
KYC compliance: a positive move for the electron?
Electroneum's decision to turn to KYC regulations opens the door to merchants and users willing to fear the general regulatory problems related to cryptocurrencies. The general objective of Digital ID partnership of Electroneum and Yoti is to increase adoption rates and the legitimate use of ETN. However, the world of cryptocurrency does not function fully legitimately because some users prefer privacy-based tokens.
As Electroneum is missing the privacy function, the addition of KYC blockchain procedures makes transaction identification easier. This can end up working for or against them with adoption rates remaining a gamble to increase. The addition of KYC to digital currencies shows a possible path to regulation by governments and regulators in the future.