Need KYC compliance for blockchain solutions in future, claim experts
While blockchain technology has always assured anonymity, various companies are now providing KYC facility with blockchain.
PUNE: Cyber experts have emphasised the need to have ‘know your customer’ (KYC) compliance for blockchain solutions in the coming future to address legal issues which might come up with the use of blockchain technology solutions.
Experts have pointed out that the private consumers and the regulators should stress on KYC compliant blockchain applications so that it becomes easy to track people involved in it. While blockchain technology has always assured anonymity, various companies are now providing KYC facility with blockchain.
Speaking on the issue, Santhosh Palavesh, Chief Innovations Officer of Belfrics, one of the fastest growing Blockchain Fintech firm which provides KYC-compliant blockchain called Belrium, said that Belrium provides KYC verification services via blockchain and background and personal verification checks of people will not be required every time. “It is high time that blockchain applications are KYC compliant which will help private bodies and regulators to establish more trust on blockchain applications,” added Santhosh.
Another cyber expert Chirayu Mahajan of ANA cyber forensics said that many companies providing cryptocurrency trading services have now started being KYC compliant. “However, some are yet to practice the KYC norm. The KYC will certainly help India to tackle issues of money laundering and financial crimes. We all are aware that how banks are busy in achieving their targets and compromise on KYC and so, KYC should be practised strictly in the industry,” added Mahajan.
Santhosh pointed that a central KYC will help reduce the cost and time invested by financial institutions and other bodies on KYC mechanism. “Besides, consider a situation where a customer of a bank is availing different services from the bank. In such a situation, the bank will have to check customer KYC only ones. Similarly, a customer dealing with multiple banks will have to provide KYC only once,” added Santhosh.