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Dubai Announces Expansion of Blockchain-Based KYC for Financial Institutions

Dubai’s economic department is looking forward to expanding its current blockchain-based KYC support. The announcement on KYC (Know Your Customer/Client) explicitly features financial institutions operating in Dubai.

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‘Know Your Customer’ is an essential element of DED financial service for verification of new clients. And using blockchain-based KYC enables a noticeably faster, secure, simple & efficient process. Currently, blockchain KYC counts more than 50% of accounts for verification in Dubai.

Department of Economic Development or Dubai Economy just partnered with the Dubai International Financial Center. This partnership will implement the task of expanding the digitized tool.

KYC Blockchain Consortium in the UAE initiated its journey in February 2020. An unbelievable growth occurred by July 2020, thanks to extensive brand participation. In fact, the present number of its members count over 120 to cover a large part.

Many established brands stood to become their founding members. The list includes – Emirates NBD, HSBC, Commercial Bank of Dubai, Emirates Islamic & Abu Dhabi Commercial Bank. And Dubai Economy confirms blockchain utilization to possess at least half of its entire KYC verifications.

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“Application of blockchain for an efficient KYC checking is getting popular” (Source – Linkedin)

Dubai Economy Corporate Sector CEO, Abdulla Hassan credited the rocketing growth to blockchain’s efficient mechanism. The system helped its financial institutions to digitize one essential service requirement.

He remarked the launched consortium as one increasingly crucial platform for Dubai finances. As it simplified the investors’ bank account opening process. Also, database digitization enabled banks to receive verified KYC data with minimal issues.

Hassan also denoted the initiative to impose a positive impact in attracting businesses to Dubai. Again, the facility pushes Dubai & UAE to rank on top in terms of global ease of doing business.

Meanwhile, the UAE authority keeps helping the blockchain industry for viable economic growth. CoinGeek reported that a UAE-based license bureau KIKLABB accepts digital currencies for payment.

To cope with the situation, Dubai Financial Service recently suggested security token regulation. The regulation is currently engaged in checking public feedback until April 29.

As it seems, successive emphasizing on digital platforms can empower Dubai’s well-set economy. And a further extension of the blockchain-powered facility may initiate a profitable outcome in near future.

Suez Halder

Suez Halder

Suez Halder is an experienced cryptocurrency & blockchain reporter and analyst who covers different aspects of online trading on 'Social Trading 101'. Taking direct part in crypto trading from 2017, he specializes in evaluating the cryptocurrency & blockchain viability.

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