Digital identity verification provider, Blockpass, has launched its Unhosted Wallet KYC solution to help cryptocurrency companies remain compliant with new and developing regulatory requirements.
This comes as the risk of fraud, terrorist financing and other illicit financial activities is on the rise and is associated with unhosted or ‘non-custodial’ crypto wallets where individuals control the keys.
This has sparked global regulators to introduce new laws for unhosted wallets to pass through KYC controls and prove that they are owned by their respective possessor. Blockpass’ solution assists business customers to prove that user withdrawals to unhosted wallets are compliant with regulations.
“The increasing trend of cryptocurrency regulation is something we’ve always known was coming and welcomed in order to see a stronger and more widely accepted crypto market,” Adam Vaziri, Blockpass CEO, said.
“We’ve been closely monitoring the state of regulations worldwide in order to prepare, adapt and develop our products to meet or exceed upcoming regulatory standards before they impact businesses. We make sure everyone has time to adjust to new requirements.”
Blockpass has also recorded approximately one million verified user identity profiles providing an all-round, data-secure digital identity that can be used for a variety of services, token purchases and to gain access to regulated industries.
The firm said it has enjoyed successful first years due to the “existential need for DeFi projects to be regulatorily compliant” and a “surge in interest for [its] On-chain KYC, the only live zero knowledge solution for Crypto KYC, and [its] Unhosted Wallet KYC solution finally enabling blockchains and DeFi platforms to have a compliance layer”.