Flare has partnered with Red Date Technology to introduce a new identity verification system for Mainland Chinese visitors in Hong Kong.
The system, which uses decentralized identity technology, allows users to go through KYC checks while keeping their personal information private, according to a Flare press release. KYC is a process that financial institutions use to verify the identity of their clients to comply with regulations.
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Two test trials
The initiative included two test trials. The first trial allows users to sign up anonymously for a regulated stablecoin app. The second trial enables users to buy tokenized financial products — digital versions of traditional assets — using stablecoins.
According to Flare Co-founder Hugo Philion, the project has the potential to address privacy and compliance issues, particularly in the financial services sector in China.
Flare and Red Date launch the world’s first decentralized identity KYC trial.The trial enables Mainland Chinese to register anonymously on a regulated stablecoin app and facilitate the purchase of tokenized financial products with the stablecoin.https://t.co/j321LOPxcI pic.twitter.com/1QIyeJSpBd
— Flare ☀️ (@FlareNetworks) November 8, 2024
Hong Kong is preparing new regulations allowing public blockchain-based digital currencies in the city.
If the system launches fully, Mainland Chinese visitors could legally hold wallets on public blockchains and transact with stablecoins, such as the Hong Kong Dollar-pegged stablecoin HKDA. This would be a first for many visitors, who typically need to disclose personal details to use digital financial services.
This partnership positions Flare as an early entrant in China’s emerging regulated digital asset market, as Hong Kong receives nearly 50 million annual visitors from Mainland China.
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