Flare, Red Date launch KYC solution for Chinese nationals in Hong Kong

Flare has partnered with Red Date Technology to introduce a new authentication system for Mainland Chinese visitors in Hong Kong.

Using decentralized identity technology, the system allows users to pass KYC checks while keeping their personal information private, according to the Flare press release. KYC is a process that financial institutions use to verify the identity of their customers in order to comply with regulations.

Two test attempts

The initiative included two test trials. The first trial allows users to sign up anonymously to a regulated stablecoin app. The second trial allows users to purchase tokenized financial products (digital versions of traditional assets) using stablecoins.

According to Flare Co-Founder Hugo Philion, the project has the potential to solve privacy and compliance issues, especially in the financial services industry in China.

Flare and Red Date launch world’s first decentralized identity KYC trial.

The trial allows Mainland Chinese to sign up anonymously to a regulated stablecoin app and facilitate the purchase of stablecoin-tokenized financial products. 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 is fully launched, Mainland Chinese visitors will be able to legally hold wallets on public blockchains and transact with stablecoins such as HKDA, the stablecoin pegged to the Hong Kong Dollar. This will be a first for many visitors, who often must disclose personal information to use digital financial services.

This partnership positions Flare as one of the first to enter China’s emerging regulated digital assets market, as Hong Kong receives approximately 50 million annual visitors from Mainland China.