July 24, 2024
Latest Cryptocurrency News

European Commission Selects Iota for Blockchain Sandbox

On June 13, the European Commission announced the participants for the second cohort of its European Blockchain Sandbox initiative (EBSI). Among those selected is Iota, an open-source distributed ledger and cryptocurrency ecosystem. Iota’s Web3 Identification (ID) solution, developed with Walt.id, IDnow, Bloom Wallet, and HAVN, was highlighted for its potential to revolutionize KYC processes in a Web3 environment.

EBSI: A Platform for Innovation

Launched by the European Commission in 2023, EBSI serves as a testing ground for distributed ledger technology (DLT) solutions across various industries. Each cohort comprises up to 20 projects, providing a controlled environment for testing and validation, along with opportunities to engage with regulators from across the European Union.

Iota stated that its selection is a significant milestone for its identity solution:

“It opens the door to regulatory discussions about KYC and privacy in a Web3 environment. This is especially relevant now that many regulators are considering their approach to decentralized finance (DeFi).”

Transforming KYC with DLT and Tokenization

Iota’s Web3 ID solution aims to reform traditional KYC processes, often hindered by inefficiencies, high costs, and privacy concerns. The solution employs a reusable KYC system via DLT and tokenization, enhancing security and user control over personal data. Remote identification, conducted by IDnow, ensures compliance with EU Anti-Money Laundering (AML) and KYC regulations. Verified identities are tokenized and stored in users’ wallets as soulbound tokens, usable across various Web3 applications without exposing personal information.

EU’s Digital ID Initiative

This selection aligns with the EU’s active efforts to implement a digital ID scheme. On May 21, the European Digital Identity (EUDI) regulation was updated. It requires member states to provide at least one EU digital identity wallet to all citizens and residents by 2026. Moreover, this wallet will facilitate electronically signing and storing documents, from diplomas to train tickets. Thus, marking a significant evolution in how European citizens live and work.

In a broader context, the industry is trending towards innovative digital identity solutions. The Open Network blockchain ecosystem, for instance, has allocated $5 million of Toncoin (TON) tokens to incentivize users to verify their identity using advanced palm scanning technology.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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