On behalf of a group of tech companies based in Europe, for example, IDnow, IOTA Foundation, and walt.id are developing a system to help crypto accounts to stick to newly designed EU laws. It relies on “soulbound tokens” (SBTs) which among others secure the users’ identities without disclosing the private information.
“We are excited to address a pressing need for crypto wallet solutions that comply with the latest EU regulations,” says Rayissa Armata of IDnow.
Revised EU regulations require enhanced AML & KYC controls for crypto transactions with everything. On the one hand, the data owners themselves cannot control or edit their personal information stored in blockchain but in a case of the GDPR legislation terms, and privacy regulations, on the other hand.
The consortium comes with the concept of SBTs issued by authentic institutions ensuring user identity verification without presenting personal data. This platform which attempts to fix regulatory difficulties and increase the level of trust in crypto trade is what we create.
“Identity verification in Web3 environments should be simple without sacrificing privacy or security,” says Dominik Schiener of IOTA Foundation.
European tech companies’ joint efforts in this regard provide a solution that gives out a convincing that is quite good for crypto wallets. SBTs could be an AML/KYC-compliant tool that would solve the problem of data privacy, and serve the European crypto industry with the regulations required to promote trust through growth.
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