The Tezos Foundation, which supports blockchain project Tezos, has announced know your customer/anti-money laundering (KYC/AML) requirements for its contributors.
The move comes nearly a year after the Tezos beta test, which is designed to be a highly decentralized blockchain, after its initial coin offering’s (ICO) reached a conclusion.
To facilitate the process, the Tezos Foundation has partnered with a third-party vendor to conduct all KYC/AML checks. Contributors that successfully complete this process will receive activation codes corresponding to their public key hashes from the donation period; these codes will be required for contributors to access their recommended allocations.
Tezos said contributors should know that KYC/AML will be available post-launch and there is no need for contributors to complete the process before the betanet launch unless they wish to access their recommended allocations immediately after the betanet goes live.
KYC/AML is a due diligence process that allows for the identities of individuals to be verified and has become a best practice in the blockchain ecosystem and industry for KYC/AML checks to be conducted.
Tezos Foundation said during the donation period in July 2017, there was no blockchain ecosystem or industry consensus on this subject. However, with the ecosystem and industry maturing over the past ten months, it has become a best practice to verify that contributors meet basic KYC/AML criteria.
Last year, the blockchain project raised $232m with an initial coin offering. In April this year, the funds raised during the ICO, were worth more than half a billion USD due to appreciation of the price of Ethereum and Bitcoin.
Tezos was designed to be a self-amending ledger, allowing it stakeholders to decide what protocol upgrades will be deployed to the network. The ecosystem was designed to be more decentralized than earlier blockchain projects, in which decision making was centralized in miners and developers.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
