Dubai gov’t expands blockchain-powered KYC tool for financial institutions

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Dubai’s economic department has announced that it will be expanding its blockchain-powered Know-Your-Customer tool for financial institutions. The Department of Economic Development, better known as Dubai Economy, has partnered with the Dubai International Financial Centre to expand the tool which now accounts for over 50 percent of all KYC verifications in Dubai.

The UAE KYC Blockchain Consortium first launched in February 2020. Some of its founding members include Emirates NBD, the Commercial Bank of Dubai, HSBC, Emirates Islamic and the Abu Dhabi Commercial Bank. It grew aggressively and by July 2020, it had over 120 members. According to Dubai Economy, it processes at least half of all corporate KYC verifications in Dubai.

Abdulla Hassan, the Dubai Economy Corporate Sector CEO attributed the growth to the tool’s efficiency. It has also enabled financial institutions to digitize one of their most important requirements.

He remarked, “Following its launch in 2020, the platform has become increasingly crucial not only in simplifying the procedures for opening bank accounts for investors, but also in enabling banks to digitally receive verified KYC data. This initiative has a positive impact in attracting business and on the global ease of doing business ranking of Dubai and the UAE.”

On its part, the DIFC pledged to continue supporting emerging technologies such as blockchain so as to position Dubai as the go-to financial hub globally.

“The global finance community holds Dubai and DIFC in high regard for our commitment to innovation, which includes driving the future of finance through emerging technologies such as Blockchain,” DIFC’s Alya Al Zarouni commented.

He added, “DIFC has already had success in this area having been the first to launch a one-click blockchain solution that shared verified data with a banking partner so clients could get a corporate account opened quickly, efficiently and safely.”

The UAE has continued to push for innovation in the blockchain and digital currency industry, and Dubai has been leading this commitment. As CoinGeek reported, Dubai-based license bureau KIKLABB started accepting digital currencies recently as payment for visa and trade license fees.

The Dubai Financial Services Authority has also recently suggested security token regulation. The regulator is currently accepting public feedback on the proposal until April 29. If adopted, the new regulations will allow Dubai companies to process direct payments in security tokens from prospective clients.

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