Arab Federation of Capital Markets Partners With UAE to Launch Blockchain Innovation Challenge

United Arab Emirates (UAE)’s Ministry of Economy has joined arms with the Arab Federation of Capital Markets (AFCM) to kickstart a problem that encourages fintechs to create a know-your-customer (KYC) verification system based mostly on blockchain know-how.

Trustworthiness of Data on the Blockchain

The AFCM has, along with the UAE’s Ministry of Economy, launched a market innovation problem whereby members are anticipated to create a useful know-your-customer (KYC) blockchain system. The problem, in line with AFCM, is open to “enterprise-ready” fintechs and tech companies from the area and all over the world.

Participants are anticipated to create a platform that “allow[s] transparency and immutability,” in line with the AFCM. Such a KYC platform would, in flip, “permit monetary establishments to validate the trustworthiness of knowledge current within the distributed ledger know-how (DLT) platform.”

In detailing its causes for launching the problem, AFCM, which is the guiding physique for exchanges and clearinghouses from throughout the Arab area, explains why it desires the successful KYC platform to be based mostly on blockchain. AFCM mentioned:

Blockchain will permit for an accumulation of knowledge from a number of authoritative service suppliers into one single, cryptographically secured database. KYC verification by means of this kind of structure has the flexibility to be quicker, safer and extra environment friendly than present verification procedures.

AFCM added that such a system will doubtless provide higher information safety by making certain solely licensed individuals can entry the info.

Solving Problems With Disruptive Technologies

According to judging standards, a collaborating fintech’s proposed resolution “should resolve the issue utilizing disruptive applied sciences.” The proposed resolution should even be related to the issue assertion and be suitable with native rules. Only 5 fintechs will make it to the finals of the problem, which is anticipated to finish on March 29, 2022.

In addition to the UAE’s financial system ministry, the nation’s securities regulator, the Securities & Commodities Authority (SCA), can also be listed as AFCM’s different strategic associate for this problem.

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