Blockchain
EU Blockchain Sandbox Selects IOTA’s Innovative Web3 ID
On June 13, the European Commission announced the participants selected for the second cohort of the European Blockchain Sandbox initiative (EBSI), with Iota being a prominent entry.
Iota, a key player in the open-source distributed ledger and cryptocurrency space, has been chosen for its innovative Web3 Identification solution. This project, developed in collaboration with Walt.id, IDnow, Bloom Wallet, and HAVN, aims to revolutionize identity management technology.
Addressing Challenges of Traditional KYC Processes
The inclusion of Iota’s Web3 ID solution in EBSI marks a significant advancement in addressing the inefficiencies, high costs, and privacy issues associated with traditional Know Your Customer (KYC) processes. Iota’s approach introduces a reusable KYC system that utilizes distributed ledger technology (DLT) and tokenization, enhancing security and giving users greater control over their personal data.
In this system, the KYC process begins with remote identification by IDnow, ensuring compliance with EU Anti-Money Laundering (AML) and KYC regulations.
IOTA’s Announcement on X
Once verified, the identity is tokenized and stored in the user’s wallet as a soulbound token, which can be used across various Web3 applications to verify identity without revealing personal details.
The European Commission launched the EBSI in 2023 to provide a controlled testing environment for DLT solutions across various industries. Each cohort can include up to 20 projects, offering them practical testing, validation, and direct interaction with EU regulators.
Alongside Iota, the selected projects include diverse applications such as RealEstate.Exchange (REX) by DigiShares, focusing on blockchain solutions for real estate; DoxyChain, which targets documents and business processes; Hacken, involved in smart contract and blockchain security analysis; and Origintrail, integrating artificial intelligence into knowledge infrastructure.
A Timely Initiative Aligning with the EU’s Digital Identity Push
This initiative by the European Commission aligns with the EU’s active pursuit of a comprehensive digital ID scheme. A significant update to the European Digital Identity (EUDI) regulation on May 21 set forth implementation requirements to be completed by 2026.
This regulation mandates that member states provide at least one EU digital identity wallet to all citizens and residents for electronically signing and storing documents like university diplomas and train tickets, showcasing a forward-thinking approach to enhancing how European citizens live and work.
Additionally, the use of zero-knowledge proofs is being considered for the creation and implementation of these digital ID wallets, representing an innovative stride toward privacy and security.
Globally, the digital identity sector is witnessing widespread innovation. For instance, The Open Network blockchain ecosystem has recently allocated $5 million in Toncoin (TON) tokens to encourage users to verify their identity using advanced palm scanning technology.
This trend highlights a significant step forward in regulatory discussions and implementations surrounding KYC and privacy within a Web3 framework, as exemplified by Iota’s participation in the EBSI.
Source: coinfomania.com
The post EU Blockchain Sandbox Selects IOTA’s Innovative Web3 ID appeared first on HIPTHER Alerts.
Sarah Brennan, an accomplished figure in corporate and securities law, serves as General Counsel at Delphi Ventures, focusing on investments in the Web3 space. With over 14 years of experience in securities law and a deep involvement in digital assets since 2017, Brennan also co-leads LeXpunK, a collective dedicated to establishing legal frameworks for decentralized digital communities.
In a candid interview with a prominent cryptocurrency news outlet, Brennan discussed various critical topics. She addressed the emergence of crypto super PACs, funded significantly by major firms like Ripple and Circle, to counter strict SEC regulations. Brennan viewed the SAB 121 bill, backed by the US administration, as potentially isolating the crypto community from broader financial integration.
While acknowledging the influence of centralized entities in advocating for crypto interests, Brennan cautioned against replicating traditional financial hierarchies within the crypto sphere, which contradicts its revolutionary ethos. She expressed concerns about monopolistic scenarios that could dominate the crypto landscape, exerting excessive control over essential industry components and traditional financial operations.
Regarding regulatory challenges, Brennan advocated for tailored regulations to manage systemic risks posed by large centralized crypto institutions. She criticized the current regulatory opacity and inconsistency, which she believes have fostered suboptimal business practices. Through LeXpunK, Brennan endeavors to pioneer experimental legal structures that could redefine regulatory compliance for token issuances, though reception from policymakers has been lukewarm.
Looking ahead, Brennan emphasizes the need for proactive regulatory approaches using antitrust measures to prevent crypto monopolies, promote decentralization, and target bad actors. However, she highlighted the persistent communication gap between crypto-literate legal advocates and hesitant regulators as a significant obstacle.
Brennan continues to drive forward her mission through new advocacy platforms aimed at shaping the future of cryptographic regulation, navigating complexities to ensure balanced and effective regulatory frameworks in the evolving crypto landscape.
Source: shakirabrasil.info
The post Legal Luminary Sarah Brennan Champions Pioneering Crypto Regulation Approaches appeared first on HIPTHER Alerts.
Italy is preparing to strengthen its oversight of cryptocurrency markets to align with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This initiative, initially enacted in 2022, aims to impose stricter monitoring of digital asset markets, particularly targeting insider trading and market manipulation. Under the new decree, fines ranging from 5,000 to 5 million euros ($5,400 to $5.4 million) will be imposed based on the severity of violations, reinforcing compliance and market integrity.
For blockchain firms and decentralized finance (DeFi) protocols, MiCA presents significant challenges. These entities must decide between fully decentralizing their networks or complying with MiCA’s Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Fully decentralized networks are exempt from reporting requirements but risk non-compliance if they employ foundations or intermediaries moderating communities.
Centralized exchanges like Binance are adapting to MiCA by categorizing stablecoins as authorized or unauthorized, aligning with regulatory requirements without delisting these assets from spot markets. Uphold has similarly adjusted by delisting certain stablecoins for compliance purposes.
Despite regulatory pressures, experts are optimistic about stablecoins’ future. Figures like Jeremy Allaire, CEO of Circle, predict stablecoins could represent 10% of the money supply within a decade. They anticipate widespread adoption driven by benefits such as financial inclusion, lower remittance costs, and seamless cross-border commerce via public blockchains.
This regulatory framework underscores the transformative potential of stablecoins and blockchain technology within the global financial system.
Source: coinfomania.com
The post Italy Ramps Up Crypto Oversight in Line with MiCA appeared first on HIPTHER Alerts.
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