The Dubai Department of Economic Development (DED) and the state-owned bank Emirates NBD launch the so-called UAE KYC Blockchain Platform.
We heard about the new blockchain platform for the first time in February 2020. It has been designed to maximize the financial operations on the user’s account and faster verification of KYC data. The platform already has 120 companies with active bank accounts on board.
KYC (Known Your Customer) is a due diligence procedure and banking regulation that must be performed by financial institutions and other legally designated entities to identify their customers and obtain certain, relevant and accurate information required to do business with the interested party.
As announced, Emirates NBD is the first bank to serve customers on the platform when it’s launched. The bank will work with small and medium-sized enterprises by giving them the option to open bank accounts through the Emirates NBD E20 Digital Buisness Bank.
In the first phase of the project, Dubai Economy transferred its active trading licenses to a new blockchain platform. They account for over 40% of all licenses in the UAE.
The government of the United Arab Emirates supports the project
The new project is supported by local authorities, it is supported, among others, by the Central Bank of the UAE and the government’s innovation office Smart Dubai. According to DED and Emirates NBD, multiple banks will soon join the platform, including Commercial Bank of Dubai, Aby Dhabi Commercial Bank, HSBC and RakBank.
Omar Bushahab, CEO of DED’s Enterprise Registration and Licensing Sector, emphasized that the KYC Blockchain Platform is in line with the government’s vision of digitization.
“It is a milestone in building the KYC data exchange ecosystem and the immediate digitization of companies by financial institutions. The project is in line with the government’s vision of eliminating the paper form of documents. “
Omar Bushahab said.
In recent years, the United Arab Emirates have become a very friendly environment for the development of blockchain technology and cryptocurrencies. Abu Dhabi Islamic Bank is the first Islamic bank to complete a commercial transaction using blockchain. The international financial center and free economic zone of the Abu Dhabi Global Market plans to start trading digital assets later this year.