KYC services

GDPR Compliance vs BlockChain Debate – Things you must know

GDPR Compliance is here to stay and it is going to be binding on every business and online enterprise that wishes to operate in European Union or want to offer its services to EU citizen despite having a non-EU presence. But this user-friendly and pro data rights regulations create an interesting scenario for companies utilising blockchain technologies or individuals involved with Blockchain based products. Interestingly, unlike a straight forward clash among technology and regulations, GDPR and Blockchain offer several positive points in addition to some clearly daunting pointers for future. GDPR compliance ensures transparency that sometimes goes in favor of blockchain technology but in case of oversight or data usage rights, same blockchain is found to be in direct violation of GDPR. There are huge fines involved if a company or business is found to be operating in violation of GDPR. So it is pertinent that every company using this technology is fully aware of the risks and benefits of using Blockchain in post-GDPR world.

Positives in GDPR vs BlockChain Debate

Both GDPR and Blockchain has a lot in common as against to what most people might think. Protecting data rights of users is of utmost important and this notion was at heart of both GDPR and Blockchain. Blockchain requires a one-way authentication and data access, something that goes beyond the requirement of data security and encryption in GDPR.

Another important aspect of GDPR is that companies are required to adapt state of the art anti data breaching protocols so that customer data is at all times out of the reach of online data bandits. Blockchain comes in handy in protecting customer data as access is restricted to users on Blockchain technology.

Tracking consent of user becomes easier with Blockchain technology. With its permanent record of data and unbreachable access to data, Blockchain ensures that consent received from users is always on record and customer will not be able to claim that they never acceded consent for collection of their data or usage of their personal information to provide any service.

Anonymity offered by Blockchain is also a great benefit that suits GDPR compliance. For example in case of permissioned blockchains, transactions can be made in fully anonymous fashion without even letting the other people know – who are sharing the same network – about the origin or destination of a transaction. Restricted access for end-users ensure that their data is secure and anonymity becomes their best safeguard against data breaches at the same time.

Negative Aspects of GDPR on BlockChain

Transactions performed via blockchain not only have the tendency of being anonymous but they are also strictly one-way. You cannot force a refund like in the case of usual banking and transaction methods.

Another possible cause of concern for enterprises and businesses using blockchain for conducting business is deleting the user data. GDPR requires businesses to delete any data they have acquired from customers in order to provide service and any history of business they might have conducted with your company. Blockchain doesn’t support this feature. It is like a permanent trailblazer and you just cannot delete this data and this is one of the core reasons that made this technology so famous in short span of time. Your data or previous operational history is saved forever but GDPR compliance becomes a problem with this feature.

Blockchain offers a complex data infrastructure and application landscape. This can further make things difficult for a company that is looking to get regulators off their back by adopting transparent methods for collection of customer data and clearly defined usage of that personal information. Risks of unintended errors is also multiplied as the complexity of the employing technology (like Blockchain) starts getting out of hand.

GDPR and Blockchain has a lot to offer, not only for end-users but service providers and businesses as well. All they need is a genuine effort on part of companies to understand the potential of Blockchain and how it can be utilised to better provide services without making compromise on GDPR compliance. Features like unbreachable databases and superior encryption prowess means that blockchain can act as ultimate weapon to get a relief from hackers and prevent monetary penalties from regulators.

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GDPR Compliance

Digital KYC/AML Operations – Shufti Pro Gears Up for GDPR Enforcement

Ever since the debate about GDPR came into existence from the EU Parliament, the long awaited and much hyped GDPR enforcement date of 25 May 2018 has been announced. Many firms across the world and the EU will see the implementation of the GDPR legislative being carried out. At which time, organizations found to be in noncompliance may face severe financial consequences.

What is the GDPR ?

On a general note, the EU General Data Protection Regulation replaces the earlier Data Protection Directive 95/46/EC. The GDPR legislation was formed to harmonize data privacy laws across Europe. Empowering all EU citizen’s data privacy in the process, and to reshape how organizations approach data privacy.

Organizations – STOP Procrastination START Acting

The GDPR effects every EU individual and entity/organization operating in the zone, dealing in the storage and access of their data. While organizations might still delay a few more days, the enforcement date is just around the corner.

Companies need to prepare quick before GDPR is in effect. Failure to comply could land a firm 20 million BGP ($25 million) or upto 4% of its annual revenue in fines. That is not a financial state any company would want to be in, for their account balance sheets or from a public relations standpoint. A recent survey by PwC found that more than 60% of all companies plan to spend more than $1 million to become compliant to the regulations.

How Digital Identity Verification Holds Importance

Given that today businesses conduct business online,  the process of validating the identity holds great importance. Why you say? The imminent risk of fraud prevails, as the person is not physically present conducting the transaction with the merchant or business entity. As more merchants utilise the power of the internet, digitising the aspect of identity verification by performing e-kyc is a need of the hour for merchants to realise. Having a digital identity verification service, greatly increases customer onboarding time. Whereby, the possibility of fraudulent identity usage is minimized and only legitimate identities are accepted.      

Organizations heavily rely on digital kyc – Know Your Customer services, in order to prevent fraud and potential scams to take place in respect to fraudulent identities. This aspect is very important for Banks and Financial Institutions, providing financial services like opening a bank account, making bank to bank payments and clearing credit histories. As more businesses conduct business/trade online, verifying ‘Who’ is the other side has become all more vital to ensure legitimacy.

How GDPR Recognizes Digital Identity Verification

You might beg to question, will digital KYC services be affected by the GDPR? The law doesn’t restrict the operations of a certain company. Rather recognizes the importance of identity and ensuring its protection. GDPR at it’s core, merely emphasis the better protection of data subjects (EU Citizens), by how information is collected and how it is processed and used.

Companies that will be in contact with such information, will need to ensure the security of information in a manner that conforms to the GDPR guidelines. Additionally, make the use of information very clear and easy to understand and transparent for individuals.

GDPR & FinTech Companies – Mandatory Alliance

FinTech companies provide RegTech solutions to clients across the world. It is obvious from the nature of their operations that these companies collect PII information of individuals and also their transactional credentials. That includes their credit card numbers and other sensitive data. For FinTech companies, it should be evident from the onset that these companies are compliant with the GDPR directive. So as to ensure that these companies are up to date with stringent policy measures and prevent any criminal proceedings to happen against them.

FinTech companies have a moral and legal responsibility to be conforming to the legislative, as is it appears legit for customers to realise their company as ‘Good to Go’ with regulators. This symbols a great area of trust for potential prospective customer to transition into actual clients. Clients alike need to be aware of the new GDPR policy and ensure they do business with organizations that are compliant with latest regulations like for example Shufit Pro.    

Shufti Pro – The GDPR Compliant AML/KYC Operator

Given that most business today run online, the need for reliable and technologically advanced identity verification services will be high. As businesses operate online, the capacity to physically see their customers and online users becomes a rarity. The need to verify identities in real time and perform digital KYC/AML compliance is important than ever.

This is where Shufti Pro comes in with redefining digital identity verification services, providing KYC/AML compliance in all jurisdictions. The EU for example, implements the GDPR guideline for data protection, to which Shufti Pro complies effortlessly. Shufti Pro ensures all of the data that it collects, conforms to the guidelines set by the GDPR legislative.

Making Assessments

The GDPR is a global phenomenon that is set to place a new standard in consumer rights. Likewise, companies need to be looking into firms that will be GDPR compliant. This is important from an organizational as well as a client’s standpoint. GDPR compliant companies will be legitimately better off from a PR perspective and ensure trust in the eyes of potential customers. Customers are no longer naive, rather fully aware of their rights and they will be in the lookout to do business with GDPR compliant companies.   

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Digital KYC/AML Operations