Sep 12, 2020
The United Arab Emirates wants to create a Know Your Customer, or KYC, a platform that will help exchange trusted customer data based on the blockchain. The Dubai Department of Economic Development (DED) and the state Bank Emirates NBD refer to this blockchain platform as UAE KYC.
This platform was created in February 2020 and its goal was to unlock digital customer login, instant Bank account functions, and exchange verified KYC data between licensing authorities and financial institutions. DED and Emirates NBD announced that the platform already has more than 120 companies with active bank accounts.
The first Bank to launch the platform was Emirates NBD. At the moment, the Bank only works with small and medium-sized enterprises, providing a transfer of their work to the digital sphere. One of the advantages is that these businesses can easily open accounts through this Bank.
At the initial stage of the project, Dubai Economy transferred all active trading licenses to the blockchain platform. This represents about 40% of all active trade licenses in the UAE.
According to information received from DAD and Emirates NBD, some banks will appear on the platform, including Commercial Bank of Dubai, Abu Dhabi Commercial Bank, HSBC, and RAKBANK. Omar Bushahab, the chief executive of the business registration and licensing sector at DED, claims that this platform (UAE KYC) is a new stage in the government’s transition to digitalization.
It is not surprising that the UAE took such decisive steps in a difficult economic situation. It has long been transformed into a country fully endorsing the blockchain and crypto industries.