Share this article
Crypto Exchange Binance to Issue 'Soulbound' Tokens to Users Who Complete Know-Your-Customer Checks
The tokens will allow users to participate in building projects on the BNB chain.
Updated May 11, 2023, 6:46 p.m. Published Sep 8, 2022, 3:29 p.m. 1 min read
Cryptocurrency exchange Binance plans to issue a "soulbound" token on the BNB blockchain to all users who complete know-your-customer (KYC) requirements, according to an official announcement.
Soulbound tokens, which in this case act as an identity passport across the BNB chain, are unique and non-transferrable. Users who would prefer their identity not be shared across the entire network can opt out of the token.
Read more: What Are Soulbound Tokens? The Non-Transferrable NFT Explained
Binance's soulbound token – named binance account bound (BAB) – will allow users to participate in "building projects" while earning rewards, according to the release.
The concept of soulbound tokens was first discussed in a blog post by Vitalik Buterin, a co-founder of the Ethereum blockchain, in January. He described the new asset class as non-transferable digital tokens that represent social identity in a decentralized society.
The use of KYC in crypto came under intense scrutiny this week when decentralized exchange dYdX prompted its users to complete a "liveness check" using webcam technology, with several users commenting on the antithetical relationship between decentralization and KYC.
Больше для вас
Project Agorá, backed by major central banks, will now move toward "real-value" testing to settle tokenized central bank money and bank deposits on blockchain rails.
Что нужно знать:
- Project Agorá, backed by the Bank for International Settlements, found that tokenizing central bank reserves and commercial bank deposits could significantly improve the speed and reliability of payments across borders.
- With major central banks like the New York Fed, Bank of England and Bank of Japan involved, members now plan...
Top Stories
