On March 1st, Dubai International Financial Centre (DIFC) and Mashreq bank declared the launch of their new blockchain data-sharing platform.

This platform will enable licensed businesses and corporations to open digital bank accounts immediately by confirming their identities through an internal blockchain.

Mashreq achieves this by eliminating the existing paper-based KYC procedure and substituting it with a blockchain-centric digital one. DIFC provides each new KYC record as part of a company’s corporate license application. With the consumer’s consent, this data is then shared electronically with Mashreq through the blockchain. 

The result is a simplification of the process companies recently go through when beginning a new bank account. This will make it quicker and simpler for new companies to do business in the UAE.

According to their statement, DIFC-incubated fintech firm Norbloc offered the blockchain platform (Fides), Gowling WLG outlined the legal agreements, and Deloitte supported Mashreq with program and governance management.

DIFC’s framework development makes the Fintech business even more appealing to the rest of the world

DIFC’s current framework changes are what has made Mashreq Bank’s current launch possible. The DIFC is one of Dubai’s autonomous free-zones, providing companies 100% ownership of their businesses without the requirement for a local partner.

DIFC’s legal framework indicates data protection while supporting practices that are consistent with all EU regulations and OECD guidelines. Their system is created to help organizations process their compliance info, while concurrently upholding every individual’s right to privacy. Ahmed Abdelaal, CEO of Mashreq, added that:

“The program aligns with the UAE Blockchain Strategy 2021, earmarking the beginning of a journey towards a broader vision of forming a Consortium of Banks, Government Bodies as well as other Licensing Authorities, for seamless sharing of customer KYC data, thus leading to increased transparency, added security, and a better customer experience..”

 The UAE has lately taken a firm stand on the crypto and Blockchain industry. In enhancement to Mashreq’s KYC platform, various other blockchain-based initiatives are also under progress. These involve a digitized trade project known as the “Digital Silk Road,” and a document exchange platform known as the “Bank Trust Network.”