Onboarding

Polimec enables regulatory compliant DeFi by incorporating a comprehensive framework with regards to KYC/AML and other checks performed by specialized, trusted third parties to ensure adequate verification of all network participants involved in a fundraise.

Particularly for issuers, it is essential to offer and distribute their contribution token only to individuals or entities that are properly verified and have met the KYC/AML standards per jurisdictional and funding round specific criteria. The performed checks ensure that a user always meets these requirements according to the issuers’ criteria.

Polimec provides two options for users to get verified and access Polimec, each providing their own advantages for different user types.

In-App User Verification

Polimec has partnered with global leading provider Sumsub to integrate its advanced KYC/AML verification solutions. This integration signifies a substantial advancement in Polimec’s commitment to seamless user experience, while not making any concessions with regards to security and regulatory compliance on a product level.

In-App user verification allows users to complete a streamlined verification process powered by Sumsub's cutting-edge technology during the participation process, without leaving the Polimec application. The solution offers a high degree of customization, allowing issuers to implement additional or specific checks relevant for their fundraise on Polimec. The process begins with user registration, where individuals create an account on Polimec and initiate the verification procedure. The system then prompts users to upload government-issued identification documents, such as passports or driver's licenses. Additionally, users may be required to perform biometric verification, like a liveness check or submitting a selfie, to confirm their identity against the provided documents. Sumsub conducts real-time compliance screening by checking against international sanctions lists, politically exposed persons (PEP) databases, and other watchlists to ensure compliance with AML regulations.

The In-App user verification excels through its industry-leading user experience and processing time, resulting in an average verification time of around one minute. This verification option ensures that the KYC/AML process is both user-friendly and robust, minimizing friction while maintaining high security standards.

The improved user experience enabled by the efficient verification process accelerates onboarding and allows users to participate in fundraising campaigns promptly. Furthermore, scalability is achieved since Sumsub's infrastructure is designed to handle large volumes of verifications, ensuring consistent performance as Polimec grows.

The integration of Sumsub's KYC/AML solutions represents a significant enhancement in Polimec's commitment to providing a secure, scalable and seamless platform for decentralized and compliant fundraising. By ensuring that all participants are thoroughly verified, Polimec creates a safer environment for fundraising and builds trust within the community.

On-Chain Credentials

Polimec provides the possibility for users to get verified by a specialized, independent third party leveraging Web3 technology. After successful verification, the third party issues a KYC credential to the user’s credential wallet, anchored on the KILT blockchain.

The credentials are pseudonymous, and no personal information is stored on-chain - hence all transactions and network participants on Polimec can be processed in a regulatory compliant and secure manner while preserving data privacy.

Network participants can initiate the credential process by visiting the third-parties’ credential issuance website. Initially, they must select the credential type they want to claim and consequently provide the requested information to perform their KYC/AML. Polimec distinguishes between issuer and participant credentials (i.e. retail, professional, institutional).

The third-party provider performs the KYC/AML checks according to the requirements or standards of the jurisdiction applicable as determined based on the information provided by the user. After receiving the requested information from the KYC/AML requestor, the third-party provider performs the KYC/AML checks and returns to the KYC/AML requestor (network participant) should there be any issue with the provided data (e.g. incomplete, unreadable, inaccurate). If the KYC/AML check is successful, the third party attests the (now) verified KYC/AML requestor by issuing the credentials to the wallet provided by the requestor in the process.

After receiving the on-chain credential, network participants can interact pseudonymously on Polimec and use all functions while remaining regulatory compliant and secure.