“The paradigm of digital identity verification process will change because one-time authentication can be used everywhere within MyID Alliance.”

The DID(Decentralized Identifier) craze from last year continues. If the last year was a recruitment-period for securing the partners, this year is expected to be a full-scale service launch. “MyID Alliance,” created by ICONLOOP, is expected to launch the service sometime during the first-half of this year. Blockmedia met with YooJin Son, the director of ICONLOOP, who is in charge of the financial services at MyID Alliance to hear more about the product.

Last year, ICONLOOP’s ‘MyID’ was designated as a financial regulation sandbox; as such, it became possible to use MyID for all services that require real-name verification in the financial sector. “Because the MyID started with a financial exception benefit, it is specialized in financial services. Typically finance is a difficult sector to approach due to its high regulatory barriers, but since we have the benefit of the special exception, we are focusing on financial sector for now,” says Ms. Son.

Though it is being developed with a financial focus, it’s not limited to it. The service is expanding in two directions: first is starting with finance – it is a pathway to expanding to non-finance sector, though started with the identification of the finance field. Since the real-name verification method recognized by the financial sector is to be the highest level of authentication, naturally it can be used in other sectors. Second is to link other services in the MyID. ICONLOOP has launched Broof, a blockchain-based verification service, as well as VisitMe, a service for issuing passes. Currently these are operated as separate services, however, ICONLOOP expects to link these to MyID in the near future.

As with any technology, it is most important to secure a usage place for DID. MyID Alliance also obtained an additional special benefits for securing it. Ms. Son says “we applied for more special benefits after the first one and through the additional benefits, MyID can be used not only for non-face-to-face account openings, but also for the issuance of medium access.”

An access-medium is used to guarantee the verification of a person’s identity or transaction history when using online financial services. The OTP, Passwords, Biometric Authentications are all access-medium. This enabled MyID to be used anywhere within financial field.

Bithumb recently joined MyID Alliance which became a news. Also there was a speculation that the Financial Services Commission actually authorized KYC via the use of MyID, since it can be used for customer-identification purposes under the special act.

Ms. Son explains “In the original special case, there was no details on the cryptocurrency exchange platform. We must coordinate with FIU (Financial Intelligence Unit) once the special act is announced; however, since the financial institutions were allowed to use it as a customer identification when they first received the special case benefit, if the cryptocurrency exchange was incorporated into the institution under the special act, it seems possible to extend MyID’s use.”

The inquiries from other cryptocurrency exchange platforms are flooding in, as the words got out about Bithumb’s decision to join the alliance.

Ms. Son predicts that the convenience of financial transactions will significantly increase through the use of MyID, because the one-time verification allows it to be used anywhere within the MyID alliance whereas other financial institutions require separate verification process each time.

The bank has to build the infrastructure to verify the authenticity of the ID cards through the Ministry of the Interior and Safety, and the KYC is conducted by the verification of the ID and checking the accounts through the Ministry and Police Department once they obtain the customer’s ID cards.

MyID is constructed in such a way that the bank registers onto blockchain that the information stored in the customer’s unit is valid and it continuously provides the available data to the customer. Through this data, the customer is able to verify their identity anywhere as long as it’s within the alliance. “I expect the paradigm of digital identification verification to change significantly, since the MyID can be used anywhere – whether financial or non-financial – once it’s verified.”

It is expected that foreigners will be able to open non-face-to-face accounts through MyID in the future as well. Previously it was not allowed, but recent revision of the law has made the alien-registration cards available for use of opening a non-face-to-face account. There’s just the matter of creating a stable infrastructure for verifying the alien-registration cards in cooperation with the Ministry of Justice. “The financial organizations will first work with the management institution, the Ministry of Justice, and then we will expand it to MyID. We have done the preparations for it,” says the Director.

She also explained that the standards for joint-use of the financial DID which was recently announced by the Financial Security Agency. The standards include details of the requirements which are to be followed when using financial DID. The Director explained that “all three associated institutions participated in sharing the developing technology and creating the standard; MyID Alliance also participated and is complying with all requirements.”