By
Chainwire
May 24th, 2023
Using QTUM, network users pay nominal fees to execute transactions or smart contract operations, creating an open and permissionless financial system.
With the continuously evolving regulatory atmosphere of blockchain and cryptocurrency, know your customer (KYC) and anti-money laundering (AML) measures are becoming more unavoidable. With this in mind, Qtum has announced that it has partnered with Blockpass to bring on-chain identity verification options to its network. As one of the pioneers of KYC integration in blockchain platforms, Blockpass will enable the possibility for all Qtum users to seamlessly achieve regulatory compliance on dApps that require greater background information.
Blockchain Is Changing the Narrative
Previously, it was common to hear news anchors exclaim how Bitcoin and cryptocurrencies are lawless, allowing anyone to easily launder money. Although many cryptocurrencies offer private or pseudonymous transactions, when interacting with any regulated application, this is not the case.
For example, any entity that operates within the financial securities sector in the United States must deal with the Securities and Exchange Commission (SEC), follow regulations and adhere to strict parameters. We’ve seen what happens when blockchain companies do not proactively operate with governing bodies, most recently highlighted by the charges the SEC filed against Ripple Labs and two of its executives for the unlicensed sale of over $1 billion in securities in the form of XRP.
By bringing easy-to-use KYC integration to decentralized applications, Qtum will be able to ease some of the stigma that has tarnished cryptocurrencies. With full regulatory compliance, no one can say that blockchain-based applications are operating outside the grounds of legality. This will be especially beneficial to decentralized exchanges, lending platforms, staking platforms, and other financial applications that need to make sure they do not cater to terrorists, criminals, and money launderers.
Developers create blockchain applications to bring financial sovereignty to users, and they do, but they still need to operate within a proper framework to achieve mainstream acceptance. When asked about the new partnership, Adam Viziri, Blockpass CEO, stated, “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.”
What Makes Qtum Different
With the addition of KYC, Qtum is positioning itself as a regulated option for new and currently available dApps moving forward. Considering the explosion in decentralized finance, increasing from less than $1 billion in total locked value (TVL) at the beginning of 2020 to its current level of over $40 billion, a platform that hosts these applications and offers regulatory compliance is extremely valuable for developers and users alike.
Qtum is an open-source, decentralized smart contract and transactional platform. It uses a Proof-of-Stake (PoS) consensus mechanism to validate and secure the network, offering decentralized governance protocols to ensure the community of stakeholders makes their voices heard regarding essential platform decisions. QTUM, its native cryptocurrency, allows the platform to reward validators and incentivize network participants collectively. Using QTUM, network users pay nominal fees to execute transactions or smart contract operations, creating an open and permissionless financial system.
