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HSBC Onboard With The KYC Blockchain Backed By Dubai Government, Becomes The First Foreign Entity To Do So.

HSBC Onboard With The KYC Blockchain Backed By Dubai Government, Becomes The First Foreign Entity To Do So

HSBC Signed Up As The First Foreign Entity

Global Banking Giant, HSBC, becomes the first foreign entity and the fourth founding member of the ‘UAE KYC Blockchain Platform.’ Under the supervision of Dubai’s government, the Department of Economic Development developed this platform that focuses on regional Know-Your-Customer.

UAE KYC Blockchain Platform

The ‘UAE KYC Blockchain Platform’ came into existence back in February of 2020, more than a year at this point. It is supposed to be a natural ecosystem where data, verified through KYC, is exchanged. This exchange takes place between the licensing authorities and the financial institutions such as banks in the UAE. 

Other Banks Signed Up For Membership

In addition to some financial institutions, several local banks signed up for the KYC Blockchain membership. The list includes Emirates Islamic, Commercial Bank of Dubai, Mashreq Bank, RAKBANK, Abu Dhabi Commercial Bank, to name a few.

The Aim of HSBC

HSBC agreed to be on board, hoping to improve the KYC process using blockchain technology. The addition of HSBC allows investors to digitally open accounts by using the data verified by another bank via blockchain. Traditionally the process of identity verification is extremely lengthy and costly. Therefore, this makes the process of KYC and opening bank accounts extremely simple and time-saving.

The Platform Becoming A Huge Success

Consequently, the efficiency savings and their positive effect on the business climate of the UAE have been garnering praises. Dubai Economy’s director of development, Omar Al Mehairi, credits the platform for “transforming the investor bank account journey” and believes that it will “positively improve UAE’s rankings in global Ease of Doing Business Index.”

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