Know-Your-Customer (KYC) Requirements for Initial Coin Offerings
| dc.contributor.author | Ostern, Nadine Kathrin | |
| dc.contributor.author | Riedel, Johannes | |
| dc.date.accessioned | 2021-11-16T07:24:24Z | |
| dc.date.available | 2021-11-16T07:24:24Z | |
| dc.date.issued | 2021 | |
| dc.description.abstract | Blockchain technology is often proposed as an infrastructure for decentralized Know-Your-Customer (KYC) verification, i.e., a process determining whether a customer is eligible for a given transaction. The benefit of using blockchain technology lies in the expected compliance costs reduction for companies by automatically enforcing KYC-requirements, whose results are accessible by multiple financial institutions. While information systems researchers have proposed conceptual models and prototypes of blockchain-based KYC-systems, they do not yet consider severe penalties that are applicable to companies if KYC-requirements are not met. Hence, if the legal requirements for KYC-processes cannot be met, these systems are not applicable. The paper uses an objective-centered design science research approach to develop a blockchain-based KYC-system for the conduct of ICOs that is compliant-by-design. To this end, the authors first identify existing KYC-requirements and define corresponding system design objectives that are used to develop a KYC-system that automatically enforces KYC-regulations, thereby preventing money laundering and other forms of identity fraud. Second, the authors contribute to the literature by providing a blueprint for compliant-by-design blockchain-based KYC-systems, in the paper, integrated into the investment flow of an ICO. Third, the authors propose a KYC-system that is applicable in the real world, by making – due to legal certainty – KYC-processes cost-effective, i.e., the proposed blockchain-based KYC-system expectably reduces compliance costs for customers and financial organizations. | de |
| dc.identifier.doi | 10.1007/s12599-020-00677-6 | |
| dc.identifier.pissn | 1867-0202 | |
| dc.identifier.uri | http://dx.doi.org/10.1007/s12599-020-00677-6 | |
| dc.identifier.uri | https://dl.gi.de/handle/20.500.12116/37553 | |
| dc.publisher | Springer | |
| dc.relation.ispartof | Business & Information Systems Engineering: Vol. 63, No. 5 | |
| dc.relation.ispartofseries | Business & Information Systems Engineering | |
| dc.subject | Anti-money-laundering | |
| dc.subject | Blockchain | |
| dc.subject | Compliance-by-design | |
| dc.subject | Design science research | |
| dc.subject | Distributed ledger | |
| dc.subject | Initial coin offering | |
| dc.subject | Know-your-customer | |
| dc.title | Know-Your-Customer (KYC) Requirements for Initial Coin Offerings | de |
| dc.type | Text/Journal Article | |
| gi.citation.endPage | 567 | |
| gi.citation.startPage | 551 |