HSBC improves its KYC procedures by onboarding Dubai’s KYC blockchain and it became the first foreign entity to do so as we can see more in our latest crypto news today.
HSBC improves even further for the local investors and corporate clients by leveraging blockchain technology. The global banking giant announced that it has been onboarded successfully to the regional KYC-focused private blockchain backed by the government of Dubai. HSBC is the first founding member to go live on the “UAE KYC Blockchain Platform” which was developed by the Dubai0based Department of Economic Development or -Dubai Economy.
The UAE KYC Blockchain platform is a national ecosystem for the exchange of verified know-your-customer data between licensing authorities and financial institutions in the UAE. As per Gulf News, HSBC’s addition to the platform provides the investors with an option of digitally opening an account with the international bank using the data that has been verified by another bank via blockchain. The Dubai Economy director of development Omar Al Mehairi praised the platform for offering savings and improving the overall business climate in the UAE saying:
“The UAE KYC Blockchain Platform has transformed the investor bank account journey by significantly reducing the time it takes to establish relationships with banks. This will positively improve UAE’s ranking in the global Ease of Doing Business index.”
The platform was founded in 2020 February and allows banks to reroute the entire process of ID verification which can be quite lengthy and costly processes using traditional methods. The KYC blockchain membership spans major local banks and financial institutions including the Emirates Islamic, Commercial Bank of Dubai, and Emirates NBD as well as Mashreq Bank. The Middle East hopes to become the main digital finance hub with Dubai at its center. The reports showed that the Dubai Financial Services Authority is continuing the effort to create a standardized framework for crypto regulations in the city but the authorities even issued a warning about Dubai coin which is a crypto labeling itself as an official digital currency of Dubai that was never approved.
The previous reports showed that HSBC is not into Bitcoin because of its volatility as the banking giant announced it is not interested in the asset.
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