Internet privacy project to distribute tokens under KYC regulation

Internet privacy project to distribute tokens under KYC regulation

Nym, a project under development on private Internet browsing, has received criticism for the KYC (Know Your Customer) requirements that it is requesting from those who wish to claim the reward tokens for having managed the testnet nodes.

The Finney and Milhon testnets, launched in the initial stages of the project, have been permanently closed, giving rise to the new testnet called Sandbox, which we recently reported on CriptoNoticias.

The fact is that those users who participated in Finney and Milhon have already received reward tokens, but additionally, NYM will grant an extra reward to discourage the Sybil attack (Sybil Attack), avoiding rewarding those who under a single pseudonym have executed several nodes.

Internet privacy project to distribute tokens under KYC regulation
NYM seeks to discourage the Sybil attack (Sybil Attack). Source: adobe.stock.

Users who want to verify that they have not executed this type of attack, must give their first name as it appears in their passport, and an e-mail address.

The Sybil attack is the one where in a P2P network, the same actor operates several nodes at the same time, adding points of good reputation like those used by Nym to operate its economy. Therefore, in addition to the email and first name, users must provide the public key of their node.

Elephant is the name of the distribution platform for these extra tokens, according to a post of this January 6, in which the NYM project clarifies the terms.

See also  Internet graphic charter: the essential points


Internet privacy project to distribute tokens under KYC regulation

You may wonder why you need to give Elephant your email address and first name. This is because we need this data for our service provider KYC.

Unfortunately, doing KYC is a legal requirement for anyone who wants to participate in upcoming sales or receive rewards in the NYM token for their participation in the sandboxes. However, it is totally up to you if you do not want to participate in these events.

NYM, private Internet browsing project.

KYC, just this once

It is important to clarify that the KYC requirement will not be necessary to manage the nodes of the NYM network, which will manage the traffic of Internet connections privately when the main network is launched, according to representatives of the project commented to CriptoNoticias.

Yes, you can run a node. At the time of launching the mainnet, the company will no longer have control, “he said. Harry halpin, CEO of Nym Technologies.

Halpin clarified that at the moment no more data will be requested for the KYC procedure, and that it is more focused on the test net than on the main net, and on discouraging the risk of a Sybil attack.


Internet privacy project to distribute tokens under KYC regulation

The legal jurisdiction to which they adhere is that of Swiss, which appears to be more flexible than that of the United States, in his opinion. However, apparently will have to exclude US residents. for distribution of testnet rewards.

Although they are based in Switzerland, they clarify, they have to follow the KYC and anti-money laundering (AML) processes to exclude people who may be subject to financial sanctions by the US, through the Office of Foreign Assets Control (OFAC). , for its acronym in English).

We are working on seeing how people from the US can participate, but this requires us to deal with many legal restrictions, and the US is more restrictive than other jurisdictions. We will continue working, but we do not want US laws to slow everything down. Our company is in Switzerland and therefore our public offering is based in Switzerland.

Harry Halpin, CEO of Nym Technologies.

Faced with criticism from some users who observe how a privacy project can request user data, Halpin pointed out that many projects do so, as they would run the risk of being vetoed by government bodies.

“NYM nodes are not anonymous, but must be public in terms of their IP address and public keys, while user data is private,” he said.

He also assured that all this procedure is being carried out to claim the rewards of the test net, but it appeared that in the future these rewards could be distributed in bitcoin (BTC).

Leave a Comment

Your email address will not be published.