Cryptocurrencies have been part of our lives for the past seven years and since then the industry has been developing with rapid speed. With over 700 cryptocurrencies available currently, there are both amazing opportunities for innovation, but there are also cases hinting that, in general, cryptocurrencies are also uniquely suited to facilitate dubious behavior.
Regulatory challenges related to cryptocurrencies are mainly linked to the anonymity of transactions and the decentralization of financial dealings. The authorities’ goal is to prevent the possibility of using cryptocurrencies as a means for criminal activity.
Considering the fact that each cryptocurrency has unique traits, we believe that XinFin and every other cryptocurrency on the market should be assessed by regulators based on its unique traits.
To prevent individuals from engaging in criminal and unwanted behavior, XinFin monitors its clients and implements rules aligned with the legal development. For example, to prevent money laundering, identity theft, financial fraud and terrorist financing, XinFin has implemented KYC (know-your-customer) rules, thus disrupting any possible misconduct by its users
By requesting documentation that proves the identity of each user, XinFin makes sure that each transfer made using the protocol is not anonymous. Since global business opportunities demand a sophisticated international customer identification and verification solution, the KYC policy adopted by XinFin includes identifying the user and verifying the identity by examining reliable and independent documents.
All submitted documents of identity remain confidential. Each user must go through a verification procedure every time his or her identity information is changed.
The KYC information requested includes name, residential address and date of birth/country, as provided to XinFin upon account registration.
XinFin is the first crypocurrency storing KYC documents of its users in its blockchain
XinFin is the first company in the world to audit its blockchain by an external, independent auditor. The objectives of the audit are to assess the consistency of the blockchain and to verify that no coins are mined outside of the blockchain. This proves that all existing transactions are included in the blockchain and are consistent.
The procedure of verifying the transactions requires that a number of automated tests are performed in order to comply with the objectives. The first procedure has to prove that all transactions are included in the blockchain and no coins are mined outside of the blockchain. The second procedure has to prove that the blockchain is consistent, meaning that each transaction’s inputs and outputs correspond and could be tracked back to the very first transaction.
The procedure of verifying the blockchain has been designed to confirm that all blocks are consistent, i.e. that each block follows a previous one and that there are no errors in the block sequence. Secondly, the blockchain must contain the transactions validated in the tests from the previous paragraphs.
So far, the results of each blockchain audit have verified that each and every transaction is true and the blockchain is consistent.
The results from each blockchain audit clearly show that the XinFin blockchain is consistent, meaning that there are no coins mined outside of it and there are no alterations to the blockchain. What the members see as the number of coins mined on the website is the actual, real-time data and there are neither more, nor less coins than those stated on the website.
The Audit of the blockchain proved that the blockchain of XinFin is consistent and that the number describing the amount of coins mined, as seen on the counter on landing page page of the website, is accurate