Blockchain as the Newest Regtech Application-the Opportunity to Reduce the Burden of KYC for Financial Institutions

摘要

The aim of this paper is to provide insight into the regulatory landscape surrounding much criticized regulatory reporting and know your customer (KYC) requirements for financial institutions and to describe how regulatory technology can be used for improvement. In terms of potential cost reduction, efficiency gains, and customer satisfaction, significant benefits are to be expected from (regulatory) technology in this domain. Additional factors that will shape the future financial environment are taken into account. First a general summary of upcoming regulation, regulatory technology, blockchain, and KYC are outlined. Subsequently blockchain application in the field of KYC is explained, including an overview of the major benefits and related challenges.