In a recent development that marks a significant stride towards regulatory compliance in decentralized finance (DeFi), Polimec, a decentralized funding protocol built on Polkadot, has joined forces with Deloitte Switzerland. The collaboration aims to issue reusable Know Your Customer (KYC) credentials to facilitate global digital asset fundraising. The move, announced on June 27th, 2023, also sets the groundwork for reducing the risk of fraud and hastening the advancement of Web3.
This venture introduces banking grade standard KYC credentials, issued by Deloitte, to simplify participation in early-stage fundraising on Polimec. The KYC credentials, secured on the KILT blockchain, offer an enhanced level of regulatory compliance, data privacy, and security.
The process ensures that users share their KYC documents solely with Deloitte, a trusted partner for major multinational corporations and governments around the globe. Deloitte Managed Services then issues the KYC credentials in Web3, the next evolution of the internet integrating blockchain technologies and decentralized systems, offering a more efficient and secure alternative to traditional KYC methods.
Kasper Mai Jørgensen, Co-Founder of Polimec, expressed his excitement over this milestone, “The fruit of our nine-month collaboration with Deloitte allows us to take one step closer to our vision of a Web3 world where individuals control their own data, identity, and destiny.”
The credentials, suitable for both individuals and legal entities, promise to revolutionize fundraising practices. Issuers can provide credibility during funding rounds, while participants can gain access to Polimec. This process paves the way for a more transparent fundraising environment compliant with regulations, where credential holders have control over their data.
Moreover, issuers can offer tokens to individuals/entities who have met the KYC/AML (Anti Money Laundering) standards, thereby reducing fraud risk and ensuring a secure and compliant investment setting. The move allows the participants to share their sensitive documents only with Deloitte, saving them time and reducing potential data breach risks.
Deloitte’s reusable KYC credentials promise a swift, secure, and compliant authentication experience for users. According to Micha Bitterli, Head of Deloitte Managed Services, this development signifies a significant move towards a compliant DeFi environment.
Thanks to the KILT infrastructure, KYC credentials can be verified at any given time. The verification is logged on the Polimec blockchain, assuring a regulatory-compliant, transparent, and secure process for all transactions while maintaining data privacy.
Ingo Rübe, Founder of KILT Protocol, was thrilled about Polimec’s evolution into a fully realized decentralized funding mechanism. The synergy between Protocols and Enterprises within the Polkadot ecosystem is credited for such innovation, fostering interoperability and shared security.
Polimec is slated to launch as a Polkadot parachain in late 2023, supporting the first projects in achieving their fundraising goals. Potential users are encouraged to join the waitlist to stay abreast of the latest developments and learn about this new way of performing KYC and managing data on chain.