Appchains

HAVN Labs Powers New EU Compliant KYC Hybrid Chain

HAVN Labs, IDnow, the IOTA Foundation, walt.id and Bloom Labs Lead the Way in Ensuring Crypto Compliance with New EU Regulations through Innovative Hybrid Blockchain Integration.

HAVN Labs, a leader in the integration of hybrid blockchain technologies, announces its participation in a collaborative consortium with IDnow, IOTA Foundation, walt.id, and Bloom Labs. This initiative is set up to enhance the compliance of Crypto Asset Service Providers (CASPs) and self-hosted wallets with the European Union’s anti-money laundering (AML) and transfer of funds regulations (TFR), presenting a significant advancement in regulatory adherence within the digital asset space.

Innovating Compliance: A Hybrid Chain Solution

In response to the newly enacted TFR regulation, which mandates that all crypto transactions include the identification data of both sender and receiver, HAVN Labs is at the forefront of developing a platform that ensures compliance while respecting the General Data Protection Regulation (GDPR) restrictions on personal data storage on blockchain and Distributed Ledger Technologies (DLT).

The initiative streamlines the customer onboarding process for a regulatory compliant and KYC/KYB DeFi ecosystem. This ensures the digital identity of individuals is verified efficiently, enabling a secure and compliant blockchain platform for transactions and interactions. By acting as a source of truth throughout the entire process, the setup ensures that all parties can trust the veracity of the data and transactions, significantly improving the user experience and customer satisfaction.

A New Era of Crypto Compliance and User Experience

Our innovative approach not only ensures regulatory compliance but also maintains the integrity and efficiency essential in the crypto space,” said Holger Köther, Managing Director at HAVN Labs. “We are thrilled to be part of this consortium, utilizing HAVN Labs’s hybrid chain architecture to meet the complex requirements of EU regulations. It is important to contribute to a solution that not only addresses the technological and regulatory challenges in the crypto industry but also promotes more trust and transparency in cryptocurrency transactions,” Köther added.

We are excited to be part of this forward-thinking consortium alongside highly esteemed crypto asset industry players to address a pressing need for crypto wallet solutions that comply with the latest EU regulations. Crypto companies are facing a race against the clock to implement new requirements, which is why we wish to submit this proposed solution to the EU for consideration to address the technological and regulatory challenges around AML, KYC, and TFR in crypto,” says Rayissa Armata, Director Global Regulatory and Government Affairs at IDnow.

We are thrilled to be working with such incredible partners to create a truly seamless user experience and to provide the underlying distributed ledger technology. Identity verification in Web3 environments should be simple and straightforward, without sacrificing privacy or security. As regulatory requirements grow, we need innovative solutions that are easy to use for both businesses and everyday users,” says Dominik Schiener, Chairman of the Board of the IOTA Foundation.

Enhancing Privacy and Security: The Role of Soul-Bound Tokens

The consortium’s system enables a trusted entity to tokenize the identification and verification process, allowing trustworthy transactions without disclosing personal data.

The resulting “Soul-Bound Token” (SBT) facilitates blockchain processes through smart contracts, and enables Web3-native interactions like cryptocurrency exchanges and other financial service providers through an intuitive user interface.

Sensitive customer information is not shared with decentralized applications (dApps), ensuring privacy. A trusted entity, however, can disclose identity information to authorized organizations upon request, serving as an additional security measure.

HAVN Labs’s role is critical in providing the necessary infrastructure for seamless interchain communication and transaction validation, thus enhancing the overall efficiency of the system and ensuring legal compliance, which is becoming increasingly relevant as “trust tech” for financial institutions.

HAVN Labs remains committed to driving innovation in the blockchain space, ensuring that CASPs can operate efficiently and compliantly within the ever-evolving regulatory landscape of the European Union.

For more information about HAVN Labs and our involvement in this consortium, please visit the HAVN website or contact us directly.

Other Releases

Read more about the initiative from our partners:

IDnow
https://www.idnow.io/pr/consortium-crypto-assets-compliant-eu-regulations (EN)
https://www.idnow.io/fr/communiques-presse/consortium-crypto-actifs-conformes-reglementations (FR)
https://www.idnow.io/de/pr-de/konsortium-krypto-assets-eu-vorschriften (DE)

IOTA Foundation:
https://blog.iota.org/kyc-done-right-with-iota/

walt.ID:
https://walt.id/case-studies/iota

About HAVN Labs

HAVN Labs is at the forefront of blockchain innovation. With its one-stop-shop blockchain platform the HAVN Launchpad, HAVN Labs enables hybrid blockchain services that enhance both privacy and interoperability across various industries. With a focus on creating application-specific blockchains, our platform is designed to enable the private and seamless operation of crypto assets while adhering to regulatory standards.

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