IOTA Token-Based KYC System Selected for European Blockchain Regulatory Sandbox

The European Blockchain Regulatory Sandbox has selected the use cases to be featured in its second cohort of sandbox dialogues. A release from the European Commission lists the 20 use cases chosen from a pool of 60 applicants based on the maturity of the business case, legal and regulatory relevance, and alignment with the EU's wider policy priorities.

IOTA’s Web3 Identification Solution has been selected for the second cohort of the European Blockchain Regulatory Sandbox.

The project is a cutting-edge user authentication system designed to meet the demand for reliable identity verification tools in the Web3 space. It is being developed by the IOTA Foundation, walt.id, IDnow, Bloom Wallet and HAVN.

A blog post on IOTA’s website celebrating the sandbox selection calls it “a significant milestone” that “opens the door to regulatory discussions about KYC and privacy in a Web3 environment.”

“Traditional KYC processes have long been plagued by inefficiencies, high costs, and data privacy concerns,” says the post. “In collaboration with our partners, we have developed a reusable KYC system to identify Web3 users in a seamless and privacy-preserving way. Our solution enables users to maintain control over their data by leveraging distributed ledger technology (DLT) and tokenization of the KYC process.”

IDnow provides verification, walt.id tokenizes it, and the credential is stored in Bloom Wallet, where it can be used and reused to prove ID verification without disclosing any private information. HAVN facilitates interchain communication and transaction validation.

“Together with our partners, we continue to push the boundaries of technical and regulatory development in Web3, and we look forward to demonstrating our seamless KYC solution for decentralized finance and other Web3 applications,” says IOTA.

The consortium is also working to make crypto asset service providers (CASPs) compliant with the European AML Regulation and the Transfer of Funds Regulation.

News source：https://www.kdj.com/cryptocurrencies-news/articles/iota-tokenbased-kyc-system-selected-european-blockchain-regulatory-sandbox.html

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