Blockchain technology can impact many different business models in the coming years. For Shyft, the main focus is on both KYC and AML solutions. More specifically, their open and unified blockchain framework for standardizing regulatory compliance has gone live. It is an interesting solution that will certainly attract a lot of attention. This further shows how versatile blockchain can be when people explore some innovative concepts.
Shyft has been working on a new open and unified blockchain framework. With a strong focus on KYC and AML, they embarked on a rather intriguing mission. This new platform will help standardize regulatory, compliance, and due diligence mandates. Users can obtain, store and work with compliance-satisfying data. In the long run, this will help reduce costs and increase the effectiveness of KYC and AML procedures.
Shyft Revolutionizes the KYC Industry
The Shyft Network focuses on creating a new paradigm for digital identity. Leveraging reputation as collateral using a blockchain makes a lot of sense. Doing so has proven to be rather difficult, as other companies have tried to achieve similar results. None of those efforts have been particularly successful, though. With the Shyft solution, the network enables base layer identity anonymization. That is quite significant for a project focusing on KYC and AML. The KYC data is anchored into the blockchain.
Shyft Chairman Joseph Weinberg comments:
“In recent years, financial technology has been evolving by leaps and bounds. Unfortunately, at the risk of disruption or even catastrophic failures like terrorist financing, industry players have been struggling to keep pace with the advancements. Financial institutions are facing an increasing number of compliance obligations with heightened complexity and rigor, where failure to comply can result in significant legal penalties and reputational damage. The current processes used by financial institutions to handle regulatory compliance are broken and highly ineffective in stopping money laundering. Identity is being looked at in an improper manner and the industry is ready for a seismic change.”
Credibility and reputation become collateral on the Shyft blockchain. User identities allow for the building of bridges and gateways As such, the system can effectively create a reputation system that cannot be “trick” in any way. It is evident the blockchain is the solution to most KYC problems our society deals with today. The company is supported by a network of many KYC regulators to make sure everything is done according to existing guidelines. This solution has the potential to influence the global economy as a whole.
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