Civic Announces Flexible Tokenized Identity Solution for Better Compliance With Crypto Regulation 

Companies Can Now Enforce Their Compliance Rules On-Chain

SAN FRANCISCO (May 29, 2024) — Civic, a leader in tokenized identity on the verifiable web, announced a new product, a custom Civic Pass, that will help crypto-asset service providers (CASPs) meet upcoming regulatory requirements with robust tokenized ID verification. CASPs, regardless of where they are located, will soon need to perform identity checks on EU customers associated with transfers of more than €1000, which is about $1,100 USD.

“We’re pleased to provide a solution during a time when new legislation is becoming enforceable,” said Civic CEO, Chris Hart. “After speaking with many fintechs, we understand that they need a tokenized identity solution that allows them to enforce their own compliance processes. That’s why we’re proud to help them meet their obligations with a flexible solution.”

With a custom Civic Pass, companies can manage user access on an ongoing basis, meaning that user access to on-chain assets can be revoked if they don’t meet requirements. Civic Pass, a non-transferable token, may be used as an advanced identity and access management tool (IAM) both on-chain and off-chain. CASPs may issue, freeze and revoke each user’s custom Civic Pass according to their own ruleset. This means only users who fulfill the rules set will be able to access crypto assets through their platform. CASPs may also collect verified identity information that they are required to store for their compliance programs. The custom Civic Pass solution comes with a well-rounded API, a powerful management interface and analytics dashboard, for easy integration with anti-money laundering processes. In sum, a custom Civic Pass is an open, privacy-preserving, cross-chain platform that may allow CASPs to meet regulations with minimal disruption.

Upcoming global regulations, including imminent ones from the EU, will require information about the source of the digital asset and its recipient, for example a name, account numbers, date of birth and address must travel with the transaction and be stored on both sides of the transfer. Entities that qualify as CASPs, including all exchanges, on and off ramps, custodial wallets and potentially some DeFi platforms, will need to be compliant with these rules, and will need a mechanism to perform identity verification (KYC) on senders or recipients of crypto assets, including non-custodial wallets. They must also store user information securely and produce it for authorities upon request.

Interested parties can access Civic’s integration guide for more details.


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