S. Korean Banks to Use Blockchain to Verify Customer IDs

BankSign will offer local banks an option to replace the existing ID verification system that has been in place for decades in South Korea
12 June 2018   318

The Korean Federation of Banks (KFB) announced that it will soon release a blockchain-based identity system for usage in local commercial banks. It will be called BankSign and will be launched in July, after the end of the test period, which had began in April this year. This is reported by CoinDesk.

Samsung developed a private blockchain, based on the Nexledger technology.  According to KFB, thanks to BankSign, local banks will be able to replace the existing identity system, which South Korean banks have been using for several decades.

The KFB Federation was founded in 1984 and represents in South Korea the interests of commercial banks, including Shinhan and Woori - they, in particular, are exploring the possibility of using blockchain for cross-border money transfers.

The new blockchain system, which, according to KFB, will be available for online and mobile banks, is one of the first blockchain initiatives of South Korean commercial banks aimed at interacting with the mass consumer.

According to the Korea JoongAng Daily, in November 2017 KFB, in conjunction with local financial institutions, formed a banking blockchain consortium, after which investigations began to create an alternative authentication system.

The beta test of BankSign began in April after the government of South Korea abolished the mandatory use by banks of the traditional system, which gave the banking industry scope for using more advanced methods.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   96

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.