The new partnership will support the company in optimising know Your Customer (KYC) processes for users taking part in Initial Coin Offerings (ICOs).
Listing companies are becoming more and more concerned about verifying the identity of ICO participants, governments are looking to bring these often-unregulated token sales under the same regulations as traditional fundraising tools.
Byteball offers a decentralised platform that has been designed to support users in launching ICOs. It will use Jumio’s advanced identity verification solution, Netverify, to offer optimum KYC checks for ICO transactions.
Philipp Pointner, VP Product, Jumio, said: “ICOs have transformed the financial arena as an alternative means for listing companies to raise funds for development projects or to launch new businesses. However, as they are currently unregulated and, as transactions in cryptocurrencies are, by their nature, anonymous, regulatory bodies are becoming increasingly concerned that they provide an avenue for money laundering and other financial crime. Netverify’s comprehensive identity verification is ideally suited to tackling the unique fraud challenges of ICO projects.”
Netverify combines ID Verification and biometric Identity Verification to provide a ‘quick and easy experience’ for users and for ICO issuers.
The Jumio-verified identity will be stored in the user’s Byteball wallet, with an encrypted shorthand form of the personal data posted to Byteball’s Directed Acyclic Graph (DAG) as a proof of identity verification. When a user needs to provide their personal data to access a service, including an ICO, they can pull their data out of their Byteball wallet in just a few clicks.
Byteball’s distributed ledger is based on DAG, which is unlike blockchains, has no blocks, no arbitrary scalability limits, no miners, and no gatekeepers. Along with its ICO platform, the company also enables users to create and enter into smart contracts for a host of other financial transactions, such as betting or insurance. Jumio said it will work with the company in the near future to provide identity verification for several other types of transactions, such as fraud screening for credit card payments and lending.
Last year, Jumio partnered with digital banking service Meed. Through the deal, Jumio provides Meed with ID verification services for its package of financial services.
Jumio was recently hand-picked by a panel of industry experts for the RegTech 100, a list of companies that every financial institution should know about in 2018. The RegTech 100 is part of the Global RegTech review – an essential, in-depth analysis of the global RegTech market.
Copyright © 2018 RegTech Analyst