The Sandbox has recently announced the implementation of Know Your Customer (KYC) verification for its staking processes. According to the announcement on August 3rd, only verified users will be able to deposit the native tokens of the platform, known as SAND, and claim staking rewards. However, non-verified users will only be able to withdraw their staked SAND. They will not be able to make further deposits.
TL;DR:
- The Sandbox has implemented KYC verification for staking processes, requiring verified users to deposit native tokens (SAND) and claim rewards. Non-verified users can only withdraw staked SAND.
- The move aims to enhance user security and compliance, especially in the context of the SEC classifying SAND as a security in recent lawsuits against Binance and Coinbase.
- The introduction of KYC verification showcases its dedication to creating a safe and compliant environment.
The Sandbox Metaverse Introduces KYC
This move comes as the platform aims to enhance user security and compliance. By requiring KYC verification for staking, The Sandbox aims to ensure that users’ accounts are verified before they can participate in staking or claim their earnings. At present, there is 123 million SAND is staked by users. This is equivalent to 6.7% of the circulating supply.
It’s worth noting that the SEC classified SAND as a security in its recent lawsuits against Binance and Coinbase. Additionally, 67 other cryptocurrencies were also deemed as securities. This is because the SEC alleges that The Sandbox makes information publicly available. The SEC claimed that this information led SAND holders to view the token as an investment. Therefore, SAND holders could expect to profit from the platform’s efforts to grow the Sandbox protocol, which would increase the value of SAND.
The Sandbox has been making strides in building a 3D metaverse utilizing blockchain technology since 2012. Pixowl initially deployed The Sandbox. Then, in 2018, Hong Kong-based Animoca Brands acquired Pixowl through its subsidiary TSB Gaming.
Amidst the regulatory scrutiny faced by cryptocurrencies, Animoca Brands co-founder Yat Siu has expressed his concerns about the lack of consistency in SEC regulations. Further, he has praised Hong Kong’s shifting attitude towards blockchain.
As The Sandbox continues to evolve and attract users to its metaverse, the introduction of KYC verification for staking processes is seen as a proactive step towards ensuring compliance and security for its growing community of users. The platform’s commitment to providing a safe environment is a testament to its dedication to building a thriving metaverse ecosystem.
