Qtum & Blockpass Team Up for Easy KYC Compliance
Qtum and Blockpass are working together to make client KYC regulations easy and inexpensive to deal with. Qtum was the first open-source platform to combine Bitcoin with Ethereum’s smart-contract functionality, and Blockpass is a leading on-chain Know Your Customer (KYC) compliance organization.
As more companies want to enter the digital currency space, the cost of KYC compliance is becoming a bigger issue. While the technologies involved in entering the crypto space are falling, the regulations that govern the industry are growing.
With this new partnership, Qtum will be able to subsidize Blockpass’s services, which makes it much easier for anyone who uses the platform. The costs and technical hurdles associated with KYC regulations are substantial, and may even keep a company from entering the decentralized currency space altogether.
Qtum is Working to Create an Inclusive Industry
The need for new solutions in the KYC industry is growing. Most DeFi platforms are created to maintain user privacy, which isn’t a great thing for companies that are required to perform KYC/AML procedures.
Jordan Earls, who is the co-founder of Qtum, commented,
“Rather than hinder innovators who are seeking to stay compliant while enabling new technologies, the Qtum Foundation would like to support those builders by backing Blockpass’ expansion to the Qtum blockchain…On-chain KYC will become a critical component for numerous protocols on the decentralized web.”
Indeed, many investors are looking to cryptos not only as a sector that is producing capital appreciation but also as an area that can provide passive income in a market where interest on capital is falling.
Qtum has some unique advantages that make it attractive from a developmental standpoint. Its Decentralized Governance Protocol (DGP) allows the platform to interact with smart contracts, and take enforcement actions. To maintain performance, its Abstract Account Layer (AAL) separates applications from the underlying protocol.
The CEO of Blockpass, Adam Vaziri, told media,
“The Qtum network is innovative, and we’re excited to be able to bring the benefits and possibilities of On-chain KYC to developers and users alike. Facilitating fast, simple, and efficient regulatory compliance on Qtum creates more opportunities for everyone, and spreads the phenomenon of On-chain KYC to an even wider audience.”
Building a Better Lending Environment
While the technical side of the blockchain industry has evolved rapidly, the tools that are in place for established financial businesses have not seen the same amount of development. As a result, this has left smaller players at a disadvantage, as KYC compliance can be very expensive to achieve.
Many investors in the DeFi space may not care about KYC right now, but the amount of liquidity that could enter the space as more regulated platforms enter use is worth thinking about.
The yields that many DeFi platforms create are much higher than the fiat currency markets, where central banks have driven interest rates to just above zero. Even the yields on junk bonds are falling, as more money chases relatively fewer debt offerings.
Of course, one answer to this situation is direct connections between borrowers and lenders, without the involvement of money center banks that can hold reserves, and not worry about making loans to smaller borrowers who have some risk attached to their borrowing.
New Horizons for Higher Returns
With its move to integrate industry-leading KYC company Blockpass into its development ecosystem, Qtum has once again demonstrated that it is committed to practical innovation that can be leveraged to create new ways of using blockchain.
As investors look for new ways to deploy capital into debt, these tools will likely find a home with established financial institutions that need to create a return and aren’t able to find fair offers in the existing fiat markets.
Bitcoin is coming into its own as an investment asset, and with tools like this, it may be the next major liquidity market as well.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nicholas Say, @Khareem Sudlow