Blog
US Government Exploring Blockchain Solutions
April 23, 2023
A lot of the news dealing with blockchain and crypto in the US has been negative recently, but a new development may signify some aspects of the technology that certain authorities are interested in exploring.
In an article this week, Cointelegraph reported that the US’ Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) are set to become Certificate Holders in a new private blockchain designed to facilitate the trading of securities. Though a private blockchain is a long way from what many in the crypto space would like to see embraced by authorities, it is at least a step in the general direction and, compared to some of the actions and attitudes the US has shown towards crypto and blockchain, is a positive move.
The BlackStar Enterprise Group is working to make on-chain over-the-counter stock trading a reality, though the process isn’t a quick one. Using Amazon Web Services’ blockchain framework ‘Quantum Ledger Database’ as a base, the BlackStar Digital Trading Platform™ is aiming to provide a regulated means for trading securities whilst solving existing issues in the system, such as concerns about fraudulent activities by leveraging the properties of blockchain technology.
That the solution proposed is on a private blockchain is perhaps unsurprising given the propensity of the institutions involved towards control and caution; however, many of the perceived benefits of a private blockchain can be replicated just as well on a public blockchain given suitable solutions, and the security of the public blockchain (and the developments that continue to grow their speed and scalability) will one day mean that private blockchains become obsolete.
One of the key aspects that private blockchains currently offer is exclusivity - only those allowed to join can participate. This ensures that regulated industries can control who accesses their solutions, but an appropriate identity solution with KYC/AML provision can enable gated access to solutions even on a public blockchain.
In a similar manner, privacy concerns may be raised with using a transparent, immutable public blockchain rather than a private chain, but use of appropriate privacy-ensuring technology like zero-knowledge proofs and homomorphic encryption can enable business to be conducted on a public blockchain without revealing personal or sensitive information: the blockchain can ensure that data conforming to specific standards has been met or that certain requirements are met without detailing any of the underlying information.
Blockpass is the solution that can provide this opportunity, with regulatory compliant solutions that provide KYC and AML services amongst others. With the inclusion of privacy-preserving zero-knowledge techniques Blockpass has the ability to prove that users meet given criteria without revealing the users’ personal details. With On-Chain KYC, Blockpass can provide all of these opportunities and meet existing and upcoming regulatory requirements on any blockchain.
The Blockpass platform is fully automated and hosted in the cloud, with no integration or setup fee. Businesses can sign up to the KYC Connect console in a matter of minutes, test out the service, and start conducting identity documents verification, KYC and AML checks. Take a look at Blockpass' groundbreaking crypto compliance solutions:
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By Matthew Warner
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