Arab Federation of Capital Markets Partners With UAE to Launch Blockchain Innovation Challenge
United Arab Emirates (UAE)’s Ministry of Economy has joined hands with the Arab Federation of Capital Markets (AFCM) to kickstart a challenge that encourages fintechs to create a know-your-customer (KYC) verification system based on blockchain technology. Trustworthiness of Data on the Blockchain
The AFCM has, in conjunction with the UAE’s Ministry of Economy, launched a market innovation challenge wherein participants are expected to create a functional know-your-customer (KYC) blockchain system. The challenge, according to AFCM, is open to “enterprise-ready” fintechs and tech firms from the region and around the world.
Participants are expected to create a platform that “enable[s] transparency and immutability,” according to the AFCM. Such a KYC platform would, in turn, “allow financial institutions to validate the trustworthiness of data present in the distributed ledger technology (DLT) platform.”
In detailing its reasons for launching the challenge, AFCM, which is the guiding body for exchanges and clearinghouses from all around the Arab region, explains why it wants the winning KYC platform to be based on blockchain. AFCM said: Blockchain will allow for an accumulation of data from multiple authoritative service providers into one single, cryptographically secured database. KYC verification through this type of architecture has the ability to be faster, more secure and more efficient than current verification procedures.
AFCM added that such a system will likely offer better data security by ensuring only authorized persons can access the data.
Solving Problems With Disruptive Technologies
According to judging criteria, a participating fintech’s proposed solution “must solve the problem using disruptive technologies.” The proposed solution must also be relevant to the problem statement and be compatible with local regulations. Only five fintechs will make it to the finals of the challenge, which is expected to end on March 29, 2022.
In addition to the UAE’s economy ministry, the country’s securities regulator, the Securities & Commodities Authority (SCA), is also listed as AFCM’s other strategic partner for this challenge. Tags in this story Arab Federation of Capital Market (AFCM), Arab Federation of Capital Markets (AFCM), Blockchain, Cryptography, data security, Fintech, KYC, UAE blockchain
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Cere Network and Polygon Launch "NFT Content Monetization" Platform Davinci BLOCKCHAIN | 2 days ago Bahrain Central Bank Completes Cross-Border Transfer Test Using JPMorgan Blockchain BLOCKCHAIN | 3 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSEASONS LA and LGND Presents an Exclusive Exhibition Featuring Renowned Digital Artist Joshua Davis Next articlePaybSwap, an Interchain Smart Economy Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItIndia Won"t Legalize or Ban Crypto at This Stage, Finance Minister Confirms
India"s finance minister has revealed the current status of crypto policy in India, including whether crypto will be legalized or banned in the country. The question surrounding the legitimacy of cryptocurrency was raised in parliament after the government announced that ... read more.Students Mining Crypto in Dorms May Face Criminal Prosecution in Russia, Lawyer Says Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead RBI: Cryptocurrency Is a Big Threat to Macroeconomic and Financial Stability in India