VeriLabs has announced the launch of kycDAO, a compliance framework designed to bridge Web3 with real world regulations.
This system leverages established regulatory concepts and applies them to blockchains to create the first interoperable, web3-native compliance infrastructure. kycDAO creates digital proofs of compliance and mints them on-chain as kycNFTs that can be reused across the Web3 ecosystem.
This framework provides opportunities for Web3 projects to be fully compliant while preserving privacy, offering easy-to-use development tools for web3 builders.
kycDAO will be used at ETHDenver's BUIDLATHON, where hackathon bounty winners must join kycDAO, connect their wallets, and mint a kycNFT to receive their on-chain payments. The system is expected to support 5,000 sign-ups with payouts of over $1 million USD. To provide regulatory guidance, kycDAO has enlisted a former U.S. Department of Justice attorney as a strategic advisor.
Balázs Némenthi, Founder and CEO of VeriLabs, stated,
"Rather than reinventing the wheel, kycDAO leverages what already works in the real world and translates it to Web3. We're empowering Web3 projects to operate in today's uncertain regulatory environment with the peace of mind that they are fully compliant."
kycDAO issues a dynamic soulbound NFT that represents a user's account status with one of kycDAO issuers. These custom non-transferable NFTs do not contain personal information, but represent the user's compliant account with a partner that continuously ensures their customer is compliant. The NFT acts as a strong proof-of-compliance without revealing information about the user.
Trusted anons are kycDAO members who benefit from the compliance framework by accessing trusted services that rely on kycDAO for compliance.
Jane Khodarkovsky, advisor to VeriLabs, said,
"I believe robust due diligence programs are key to maintaining the integrity of technology and building trust among those who use it...I'm impressed with kycDAO's very thoughtful and deliberate approach to compliance, which only helps to reinforce the tech industry's best practices and proves that Web3 can foster innovation and comply with the fast-changing legal and regulatory landscape."
To commemorate the launch and reward early adopters, kycDAO is offering a free first-year membership until March 24, 2023. VeriLabs is looking to partner with fully compliant regulated entities such as centralized exchanges, on/off ramps, and fintechs to enable their user base to reuse compliance proofs on-chain across their growing ecosystem.
VeriLabs' kycDAO is creating a network of regulated partners, including ETHDenver, Bancor, Disco, Xternity, Celo Foundation, OpenQ, Superform, and Midas Capital, to make compliance available for organizations looking for it. Blockchains live on kycDAO today include Polygon, Solana, Celo, and NEAR.
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