Electroneum (ETN) Sees to Become First KYC Compliant Cryptocurrency Coin
Electroneum (ETN) to Become First KYC Compliant Cryptocurrency
The world of cryptocurrency has in the past few years faced the calls to regulation through KYC compliance. This sentiments ride through the world of fintech as more and more users adopt digital currencies. Cryptocurrencies will be more legitimate in the transactions made as identities will be linked with the balances. This will scrap off the never ending assumptions that cryptocurrencies push for illegal acts across the world.
Electroneum, the first mobile based cryptocurrency aims to be the world’s first KYC compliant cryptocurrency after a partnership with Yoti Digital ID. The process will see Electroneum addresses comply with the Know your Customer (KYC) requirements by November 12th 2019, with the process to register users already in progress.
Users will also be required to provide proof of their identity based on the amount of Electroneum coins in their wallet, with more proofs required for high volume ETN holders.
Yoti Digital IDs to Improve KYC Compliance Procedures.
The KYC process usually is a long and time consuming process that Electroneum has 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 for its users.
As is custom with the traditional KYC/AML regulatory systems, the need to take selfies holding your ID up or waiting weeks before you are verified, has been abolished by Yoti which only takes second to verify the user.
Yoti tech lead, Thom White spoke of the improved features of Yoti digital ID while speaking on the partnership with Electroneum. He further explained the process to get your KTC requirements on track.
First, users only need to create their Yoti once, and then use this time and time again to prove their identity in a simple and secure way. This development in the regulations tech industry is set to entice the cryptocurrency field to joining Electroneum in getting users with digital IDs. Speaking on the partnership with Yoti, Richard Ells, CEO of Electroneum, remarked,
“Working with Yoti and being compliant with KYC requirements is crucial. Our corporate partners want us to be able to prove our currency only being used for legitimate activities. Now we can, that means we can begin to work with these organizations to integrate ETN as a form of payment.”
KYC Compliance: A positive Move for Electroneum?
Electroneum’s decision to turn towards KYC regulations opens up the door for willing merchants and users who feared the overall regulation issues concerning cryptocurrencies. The overall aim of Electroneum and Yoti digital ID partnership is to boost adoption rates and the legitimate use of ETN. However, the cryptocurrency world does not fully function legitimately as some users prefer privacy based tokens.
As Electroneum lacks the privacy feature, the addition of KYC procedures to the blockchain makes identification of the transactions easier. This may end up working for or against them with the adoption rates remaining a bet to increase. The KYC addition to digital currencies shows a possible route to regulation by governments and regulators in the future.