Cryptocurrencies have been part of our lives for the past seven years and since then the industry has been developing with rapid speed. With over 700 cryptocurrencies available currently, there are both amazing opportunities for innovation, but there are also cases hinting that, in general, cryptocurrencies are also uniquely suited to facilitate dubious behavior.
Regulatory challenges related to cryptocurrencies are mainly linked to the anonymity of transactions and the decentralization of financial dealings. The authorities' goal is to prevent the possibility of using cryptocurrencies as a means for criminal activity.
Considering the fact that each cryptocurrency has unique traits, we believe that RChain and every other cryptocurrency on the market should be assessed by regulators based on its unique traits.
To prevent individuals from engaging in criminal and unwanted behavior, RChain monitors its clients and implements rules aligned with the legal development. For example, to prevent money laundering, identity theft, financial fraud and terrorist financing, RChain has implemented KYC (know-your-customer) rules, thus disrupting any possible misconduct by its users
By requesting documentation that proves the identity of each user, RChain makes sure that each transfer made using the protocol is not anonymous. Since global business opportunities demand a sophisticated international customer identification and verification solution, the KYC policy adopted by RChain includes identifying the user and verifying the identity by examining reliable and independent documents.
All submitted documents of identity remain confidential. Each user must go through a verification procedure every time his or her identity information is changed.
The KYC information requested includes name, residential address and date of birth/country, as provided to RChain upon account registration.
RChain is the first crypocurrency storing KYC documents of its users in its blockchain