One of the Middle East’s financial centers, the United Arab Emirates (UAE), continues to expand blockchain-focused developments.
The Dubai Department of Economic Development (DED) has established a Know Your Customer (KYC) block chain consortium with six major banks.
Dubbed the KYC Blockchain Consortium, the new blockchain-based regulatory platform is designed to speed up processes such as exchanging customer digital data and documents while ensuring security. The project also aims to establish a unified platform for KYC efforts among current and future members of the ecosystem, such as qualified financial institutions and licensing authorities.
UAE’s first KYC blockchain platform launched in the first quarter of 2020
According to a report published on February 19 by Dubai-based Gulf News, the six banks involved in the effort include the State Bank of Dubai Emirates NBD, HSBC, Emirates Islamic, RAKBank, Abu Dhabi Commercial Bank and Commercial Bank of Dubai.
Scheduled for launch in the first quarter of 2020, the KYC Blockchain Consortium would become the first such project in the region, notes the report.
Ali Ibrahim, Deputy Director General of DED, stressed that the effort is aimed at increasing investment in the region:
“Our strategic alliance with banks to launch the first KYC blockchain platform in the UAE is an important step towards further attracting investors to this market.”
In addition, the ecosystem powered by the consortium hopes to stimulate business as well as regulatory compliance in the UAE. According to the report, the UAE Central Bank and Smart Dubai authorities will monitor the operations of the KYC Blockchain Consortium.
The newly declared block chain in the UAE is consistent with the overall growth in block chain spending in the region. As recently reported by Cointelegraph, governments in the Middle East and Africa region are expected to see at least a 400% increase in their investments in blockchain-based solutions in four years.
In October 2019, the United Arab Emirates accepted the cryptocurrency regulations after releasing the bill for public comment. As noted, the UAE has taken a very positive stance towards the crypto and blockchain industry, as the country is already hosting a number of blockchain-based initiatives such as the digital business project “Digital Silk Road” and the document exchange platform known as the “Trust Bank Network.”