The Euro Banking Association (EBA) is committed in one study clear to the Distributed Ledger technology (DLT). The Bitcoin’s underlying Blockchain technology is therefore suitable, in particular, to improve Compliance in the area of KYC.
Bitcoin is often associated with currencies. But that the underlying technology has much more Potential, more and more companies. So, the “working group crypto-technologies” of the EBA. It was on Monday, the 23. In October, a new report with name “crypto technologies: improving regulatory compliance”. The group is in various fields of application of the DLT for the financial system are examined.
DLT can be more than just Bitcoin
In Particular, the authors of the Papers comment on the importance of the DLT for the improvement of Compliance processes. In a press release, the ECHO is BTC, it is called:
“The use of crypto technologies such as the Distributed Ledger Technology (DLT) for RegTech holds considerable potential for the improvement of Compliance processes.”
the authors believe, in particular, the Compliance with KYC regulations in the eye. It is, among other things, in the case of Bitcoin exchanges, to ensure that it knows its customers.
KYC through DLT?
Current KYC processes are often slow and redundant, according to a press release. This is associated with high cost and dissatisfied customers. DLT could facilitate the sedate processes in which customers must submit their personal data for each type of service. To José Vicente, head of the working group:
“do not submit If each Department is a common point of view on the KYC has a set of attributes to customers, the KYC documentation for each additional service once again. DLT-based data exchange could even be on several of the financial institutions extended.“
This could benefit financial institutions, their efficiency and thus the competitive ability to expand. Just Bitcoin exchanges would benefit. Also, the Supervisory authorities are likely to benefit Vicente, from DLT:
“DLT-based Reporting systems can be designed from the beginning in compliance with the rules and help to make this reporting more efficient and error-safe, which comes with both the financial institutions and the regulatory authorities.”
idea in the context of the Sibos conference
The working group consists of the Euro Banking Association. The EBA is a specialized Association of more than 160 mainly European banks and according to his own innovation in the European payment traffic.
The paper, the working group established in the framework of the up to 25. October 2018 ongoing Sibos conference in Sydney. Under the auspices of the Belgian transaction, the service SWIFT, the conference is held once a year in different locations.
