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EURK Pilot Test Smart Contract is unavailable for security reasons as of 2nd of April. Therefore, EURK will not be available for buying, selling, and exchanging until further notice.
The problem is being resolved by our team of technicians.
We sincerely apologize for the inconvenience caused.
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Please stay tuned and await further updates.
EURK Team
Know Your Customer (KYC) verification, especially on-chain KYC, has increasingly become a necessity in the modern financial world. As individuals and businesses interact online with greater frequency, identifying parties and screening for illicit activity is essential for protecting all participants.
In this article, we'll explore the rise of on-chain KYC verification and how technologies like blockchain could streamline compliance while upholding privacy. From basic concepts to emerging applications, by the end, you'll understand how identification is evolving to keep pace with innovation.
Traditionally, KYCinvolved collecting and storing sensitive personal details in centralized databases. On-chain KYC flips this model, leveraging blockchain to distribute identity attributes instead.
With on-chain KYC, institutions link identity information to public addresses rather than storing it privately. Users retain control of their data and share only what's needed with counterparties in each interaction.
Verification happens on the distributed ledger, so no single party holds complete user profiles. This enhances both privacy and portability compared to traditional Know Your Customer. Let’s start to explore what KYC means for crypto, Web3, blockchain, and more!
For crypto exchanges and other digital-asset businesses, implementing KYC is now a table stakes for operating legally. Regulations require identifying anyone transacting over certain thresholds to curb criminal misuse.
On-chain solutions could soon expand beyond NFTs and DeFi to almost all blockchain projects. KYC in the cryptospace often involves uploading ID photos and other documents during the account registration process.
Exchanges then screen for sanctions lists and monitor activity for suspicious behavior over the lifetime of the relationship. A euro stablecoin, EURK, powered by Cryptobunq aims to bring these same protections to the blockchain in a seamless, privacy-preserving way.
EURK stablecoin offers transparent transactions securely through Cryptobunq, a crypto service leader in on-chain verification. If you are interested in exploring eur stablecoin advantages, check out “What are euro stablecoin and EURK?” for more!
Blockchain technology is the foundation of the Web3 vision for a more decentralized internet. In such a model, traditional KYC friction points around centralized storage and cross-border compliance could become non-issues.
Early experiments indicate on-chain KYC may soon integrate seamlessly into crypto-native experiences. Instead of separate sign-ups and document uploads, your identity could be verified once, for example via the EURK protocol, and then be portable across all dApps and services that recognize it.
Intermediaries like Cryptobunq could issue credential passes that selectively disclose only permissioned attributes. This ushers in new frontiers for inclusivity, privacy, and freedom online while still satisfying regulators' objectives. Therefore, crypto services can help you pave the way for enhanced security.
Collecting core details like full name, date of birth, nationality, and current address to uniquely identify an individual.
Confirming the identity information provided is accurate, such as by reviewing ID documents either physically in person or digitally with tools like biometrics,
Continuously checking customers against databases of politically exposed persons, sanctions lists, and watchlists, as well as keeping an eye on on-chain transactions for any strange patterns that could point to illegal activity throughout the relationship.
This is the last step where on-chain KYC analysis tools like blockchain analytics really come in handy for keeping track of behavior across multiple addresses.
There are typically seven main steps involved in a standard KYC process:
The first three steps involve collecting, verifying, and screening customer identification data. Risk scoring then analyzes this information to allocate customers to risk categories.
Enhanced due diligence is conducted on higher-risk profiles. Ongoing monitoring ensures profiles stay accurate over time through watchlist checks and re-verification. And all records are safely retained as per compliance rules.
Now that we've reviewed the three components of KYC and the steps, let’s outline the typical KYC process in detail!
Customers submit their identification information and documents upon initially opening an account. This could be done by installing a digital wallet that's integrated with EURK's verification network, for example.
Advanced biometrics are sometimes used to ensure the physical person performing KYC matches the documentation, reducing the risk of fraud.
Systems automatically extract data from IDs and verify details that match what was submitted. This process is much more streamlined using machine learning tools than manual review.
Names are screened against global sanctions lists to block any restricted individuals from accessing the financial system.
Analytics assigns a risk level to each customer based on their information and location. Higher-risk profiles face additional due diligence to know your customer requirements.
As mentioned previously, continued monitoring ensures compliance on an ongoing basis across accounts. Solutions like EURK stablecoin make this possible without compromising privacy.
By encoding identity attributes on-chain with protocols, KYC verification on blockchain can take place trustfully and without centralized intermediaries. Individuals share only permitted attributes signed with cryptographic proofs to validate assertions regarding their identity.
Relying parties can verify these blockchain-registered claims in real-time rather than reverifying with each new interaction. This shift to self-sovereign identity flips the KYC model from "move personal data" to "move validation results."
Users retain control and portability while still enabling compliance checks as needed. By distributing identity data, the risk of privacy loss or centralized hacking diminishes significantly.
Overall, on-chain KYC could lift barriers to participation in the digital asset space while upholding stringent verification standards.
Sensitive identity attributes are no longer stored in one location vulnerable to hacking or government overreach.
Once verified through a service, individuals can access any partner platform securely without re-verifying.
Self-sovereign identities function regardless of geography or political jurisdiction.
Removing choke points around centralized authorization can expand the digital financial system to unbanked populations.
Distributed networks facilitate ongoing screening compliance more seamlessly than isolated systems.
Encoding KYC protocols on blockchain unlocks countless new use cases we have yet to imagine around identity and reputation.
As digital interaction and cryptocurrencies continue to enter the mainstream, on-chain KYC identity verification will be crucial for protecting users while enabling widespread access.
Products offer a glimpse of how compliance with KYC and know-your-business regulations can happen seamlessly without requiring individuals to forfeit control of sensitive details or interrupting their experiences.
Overall, distributed ledger technology holds immense potential to shore up financial inclusion, data protection, and innovation moving forward in a fully compliant manner. If you want to explore enhanced security through on-chain KYC, EURK is a good option, as it is a reliable stablecoin.
EURK offers stability in value with efficiency, security, transparency, and high liquidity as a stablecoin. You can easily make crypto payments and crypto exchanges with EURK and help your business adapt to the future of money without compromising security. Become a partner and explore EURK today!
