Electroneum has become the first cryptocurrency in the world to introduce Know Your Customer (KYC) procedures.
The mobile-based cryptocurrency announced today that users will have to comply with KYC by Monday 12th November. Voluntary KYC registration is open from today.
Electroneum is partnering with RegTech firm Yoti to enable its customers to complete elements of KYC via Yoti’s digital identity app. It will adopt a tiered approach to KYC which will involve each user providing proof of identification based on the amount of ETN, Electroneum’s digital currency, they hold or send from their wallets.
Electroneum CEO and Founder Richard Ells says: “Today marks the third time Electronuem has broken new ground in the cryptocurrency world. We were the world’s first mobile cryptocurrency, we developed the world’s first cryptocurrency instant payment API and today we are the world’s first KYC-compliant cryptocurrency.
“These three milestones show we are looking to take cryptocurrency out of its traditional home among the elite and out into the wider world to make a real difference to people’s lives.
“Working with Yoti and being compliant with KYC requirements is crucial to this. Our corporate partners want us to be able to prove our currency is only being used for legitimate activities. Now we can, that means we can begin to work with these organisations to integrate ETN as a form of payment for their goods, services and products.
“This will help us evolve from a cryptocurrency into a recognised means of digital payment like PayPal or Apple Pay, which will enable us to help our core market: smartphone users in developing and emerging countries.
“We believe this is where the future of cryptocurrency lies and where it can have the biggest impact, but also where we as a mobile-based cryptocurrency can make a real difference, mobile payment is typically cheaper, quicker and more accessible than traditional means.”
A key element of Electroneum’s KYC process will be its partnership with Yoti. The RegTech firm will help to streamline and simplify the process by letting individuals prove their identity in seconds and share their verified details – removing the need for them to present forms of identification multiple times and keeping their documents secure.
Richard Ells comments: “Working with Yoti will allow our users to meet our KYC requirements in a way that is fast, simple and robust. I’m delighted we’ve found a partner that shares our desire to shake up the FinTech world without cutting corners or compromising security and know we’ll achieve great things together.”
Thom White, Future Technologies Lead at Yoti, commented: “Our KYC solution is radically different to other providers. The free Yoti app lets individuals instantly share their verified attributes at the click of a button or scan of a QR code – completing the KYC process in seconds rather than minutes. This enables organisations to drastically reduce the time taken for a someone to complete a KYC check.
“Individuals only need to create their Yoti once, and then use this time and time again to prove their identity in a simple and secure way. As a result, we are seeing rapid market penetration in the Cryptocurrency sector, as well as FinTech and Financial Services more generally. We’re delighted to continue our partnership with Electroneum and help them become the world’s first KYC-compliant cryptocurrency.”
Richard Ells concludes: “This is a landmark day for Electroneum and cryptocurrency as a whole. Today ETN paves the way for a new type of cryptocurrency, one that is open and transparent and wants to be used as a true means of payment and be a force for improving people’s lives.”