- The my-ID service will be used for non-face-to-face verification
- ICON was one of the 18 companies selected to pioneer
- My-ID enhances consumer data protection
South Korea’s financial regulator has approved ICONLOOP’s blockchain-based digital identity authentication service for its fintech sandbox. The digital ID service will be used for an automated bank account opening service.
As per the announcement on June 26, 2019, South Korea’s Financial Services Commission (FSC) has included ICONLOOP’s ‘my-ID’ into the “Innovative Financial Services and Regulations Sandbox” created under the Financial Innovation Support Special Law. ICONLOOP’s digital ID service dubbed “my-ID” will be used for untact, which is a non-face-to-face verification for opening bank accounts. Commenting on the development, ICONLOOP CEO Jonghyup Kim stated:
“The designation of my-ID as an Innovative Financial Service will be a monumental turning point in the growth of Korea’s blockchain industry […]this will be an opportunity to prove and verify the usefulness of blockchain technology. I hope that this marks not only the expansion of blockchain technology but also the creation of an overall digital identity ecosphere.”
New Opportunities and Incentives for Innovation
South Korea’s financial regulatory sandbox policy went into effect Monday, April 1, 2019, with the Financial Services Commission selecting 19 innovative fintech services for “priority review.” The fintech sector in South Korea is rapidly expanding, and the government’s recent implementation of its “regulatory sandbox” has opened up new opportunities and incentives for innovation.
A regulatory sandbox is a mechanism for the development of regulations that do not unduly slow down the pace of innovation. Regulations could be temporarily suspended for new forms of financial services while they are being tested in the market. New measures will be introduced later, once it becomes clear what kinds of regulations are appropriate and reasonable.
Exempt From Current Regulations
The regulatory exemption policy came into effect as part of the Special Act on Financial Innovation Support which was passed by the National Assembly in November last year and formally went into effect in April this year.
Under the special act, companies selected by the FSC to partake in the regulatory sandbox are exempt from current regulations. To protect consumers from potential harm, participating companies are required to submit consumer protection and risk management plans, which the FSC has to approve before they can be tested.
ICONLOOP’s ‘my-ID’ will be configured in a ‘self-sovereign’ manner, eliminating the risk of personal information leaks. The self-sovereign manner refers to a method where one keeps all of his/her information until it needs to be shared with a specific party, as opposed to consigning his/her information to a third authenticating party.
ICON is one of the largest blockchain networks in the world whose network comprises various institutions ranging from financial institutions, insurance companies, hospitals, universities and more.