Arab Federation of Capital Markets Partners With UAE to Launch Blockchain Innovation Challenge

AFCM

United Arab Emirates (UAE)’s Ministry of Economy has joined hands with the Arab Federation of Capital Markets (AFCM) to kickstart a challenge that encourages fintechs to create a know-your-customer (KYC) verification system based on blockchain technology.

Reliability of data on the Blockchain

The AFCM has, in collaboration with the UAE Ministry of Economy, launched a Marketplace Innovation Challenge in which participants are expected to create a working blockchain know-your-customer (KYC) system. The challenge, according to the AFCM, is open to “enterprise-ready” fintechs and tech companies from the region and around the world.

Participants are expected to create a platform that “enable[s] transparency and immutability,” according to the AFCM. Such a KYC platform would, in turn, “allow financial institutions to validate the trustworthiness of data present in the distributed ledger technology (DLT) platform.”

Detailing its reasons for launching the challenge, the AFCM, which is the governing body of exchanges and clearinghouses across the Arab region, explains why it wants the winning KYC platform to be blockchain-based. AFCM said:

Blockchain will allow for an accumulation of data from multiple authoritative service providers into one single, cryptographically secured database. KYC verification through this type of architecture has the ability to be faster, more secure and more efficient than current verification procedures.

The AFCM added that such a system is likely to provide better data security by ensuring that only authorized people can access the data.

Solving Problems With Disruptive Technologies

According to judging criteria, a participating fintech’s proposed solution “must solve the problem using disruptive technologies.” The proposed solution must also be relevant to the problem statement and be compatible with local regulations. Only five fintechs will make it to the finals of the challenge, which is expected to end on March 29, 2022.

Apart from the UAE Ministry of Economy, the country’s securities regulator, the Securities & Commodities Authority (SCA), is also listed as AFCM’s other strategic partner for this challenge.

admin

Read Previous

175 Million XRP Shoveled by Galaxy Digital’s BitGo; Are Institutions Selling?

Read Next

Here’s the big picture behind Ethereum’s rate of 1.53M new addresses

Leave a Reply

Your email address will not be published. Required fields are marked *

Right Menu Icon