Banks in Pakistan plan to launch an electronic platform for know-your-customer procedures that will be operating on a national level. The blockchain-based system will allow them to exchange the personal information of customers through what they describe as a decentralized and self-regulated network.

Banks of Pakistan Looking to Employ Blockchain for KYC Checks

Pakistan Banks’ Association (PBA) has signed a contract for the implementation of a blockchain-based know-your-customer (KYC) platform which will be developed by Avanza Group. The latter unites companies specializing in advanced banking applications, customer experience management solutions, blockchain, and artificial intelligence.

The signing ceremony was held at the industry organization’s office in Karachi on Thursday and was attended by a number of officials, including its Chairman, Muhammad Aurangzeb and the CEO of Avanza Innovations, Waqas Mirza, the PBA announced.

The project to create the electronic KYC system is part of ongoing efforts of the State Bank of Pakistan (SBP) to strengthen the country’s anti-money laundering (AML) and counter-terrorist financing (CTF) control infrastructure, a press release elaborated.

“In addition to strengthening AML controls, the deployment of this platform will bring about efficiencies at participating banks and will result in improvement in customer experience,” detailed the PBA, which has been overseeing the project on behalf of its members.

Consonance, the e-KYC platform designed by Avanza, uses blockchain technology to enable banks to standardize and exchange personal details via a “decentralized and self-regulated network.” That should happen with customers’ consent, according to the association.

Banks will be able to make assessments of their existing and new customers using the data from KYC checks performed by other participating institutions. This should minimize onboarding costs and improve customer experience when opening an account, thus “facilitating financial inclusion,” the PBA insisted.

In March, last year, SBP Governor Reza Baqir was quoted as stating that he sees few good use cases for crypto. At the same time, he acknowledged that blockchain technology can be useful with its potential to solve many problems.

Do you think Pakistani banks will find other use cases for blockchain technology? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

A new organization has been established in Turkey with the aim to monitor and help develop the country’s crypto sector, local media reported. Its first task will be to address recent problems with some cryptocurrency exchanges and boost confidence in the industry as a whole.

New Entity to Deal With Issues in the Crypto Space in Turkey, Hopes to Increase Transparency

People trading cryptocurrencies in Turkey have been estimated at over 8 million as of 2022, according to Emrah Inanc, head of the Crypto Industry Development, Monitoring and Reporting Association. The country is in the world’s top five in terms of crypto investments, he highlighted.

Speaking to the Anadolu Agency, the top executive of the newly-founded organization also emphasized that transparency is crucial for the development of the crypto sector. That’s why it will first focus efforts on solving problems with crypto exchanges and improve confidence in the industry.

Inanc pointed out that a number of exchanges from the Far East have been trying to attract Turkish customers. On this backdrop, he noted that the lack of rules and regulatory authority has led to “inconvenient results,” and acknowledged some of the challenges in relations with the public sector:

We are faced with allegations that some exchanges have blocked customer accounts illegally for financing terrorism and money laundering.

Emrah Inanc also indicated that the association is ready to periodically and transparently share information about the shortcomings it’s identifying with all relevant institutions. He also warned traders about dealings with offshore exchange platforms.

“In order to prevent these illegal practices and irregularities, we will take the necessary steps to block cryptocurrency exchanges … that cause unlawful transactions, cause victimization, and threaten our citizens and the country’s economy,” Inanc elaborated. He also urged both individuals and organizations to send requests, suggestions, and complaints to the group by filling out a form posted on its website.

With the popularity of cryptocurrencies growing amid high inflation, Turkey has become an attractive market for crypto exchanges in the past few years. Turkish traders were also affected by a few failures in the sector, including that of FTX which filed for bankruptcy in mid-November. Turkey’s financial watchdog launched a probe into the collapse of the major exchange as it had a Turkish platform.

Several domestic exchanges have also shut down, such as Thodex, whose founders and top executives were accused of committing fraud and money laundering as part of a suspected exit scam. Vebitcoin was investigated when it ceased activities after the country’s central bank banned crypto payments, and Coinzo closed down as well.

Do you think the new crypto association will help the development of the crypto industry in Turkey? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Cryptocurrency exchange Binance has become a member of an organization providing training for sanctions compliance. With the move, part of efforts to improve its capabilities in this field, the largest trading platform for digital assets joins a club of multinational corporations and financial institutions.

Crypto Exchange Binance Seeks Additional Sanctions Training for Its Compliance Team

Binance, the leading cryptocurrency exchange in terms of daily trading volume, has joined the Association of Certified Sanctions Specialists (ACSS) which works to improve the qualification of sanctions compliance professionals employed by global companies.

“We will be leveraging the training materials, comprehensive databases, and deep networks within ACSS to further enhance the skills and expertise of our team,” Binance said in an announcement. It also pointed out that it’s the first crypto exchange among the members of ACSS, which was established in 2018.

As part of the certification process, all compliance specialists on Binance’s sanctions team as well as the money laundering reporting, compliance operations, and special investigations leads will be required to undergo training with the ACSS, the company explained.

The exchange expects the training to equip its sanctions team with the latest guidelines issued by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) on how to develop compliance programs and ensure that its experts understand the risks of violations in various jurisdictions.

“The blockchain industry is still in its early years, and it’s our priority to continue upholding the highest level of compliance amid a fast-evolving space,” commented Chagri Poyraz, Binance’s global head of sanctions. He emphasized that the company wants to continue to be among those that set the standard for security and compliance in the industry.

“ACSS, as an organization specializing in providing sanctions training for multinational corporations and financial institutions, will ensure the highest quality of training to the team at Binance in this dynamic sector and help advance compliance in the crypto industry,” added the association’s Executive Director Saskia Rietbroek.

Binance Maintains Focus on Regulatory Compliance

In the past couple of years, Binance has been focusing on efforts to improve regulatory compliance and in 2022 increased its compliance team to 750 members. The exchange has been licensed, registered or obtained approvals to operate in 14 different jurisdictions, including France, Spain, Bahrain, Dubai, and Australia, the exchange detailed.

Binance has been also engaged in joint initiatives with national authorities in new markets. In December, it offered to support Azerbaijan in attempts to introduce regulations for digital assets and launched a blockchain education program in Kazakhstan after offering advice on crypto regulations to its government, too.

The collapse of FTX, a major competitor of Binance which filed for bankruptcy protection in Nov. 2022, led to increased regulatory scrutiny over the crypto industry around the world. Earlier last year, Binance complied with EU sanctions imposed on Russia following the invasion of Ukraine by limiting services for Russian residents and entities.

What do you think about Binance joining the Association of Certified Sanctions Specialists? Share your thoughts on the subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, NTON ZUBCHEVSKYI / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.