Crypto Regulations: Scallop’s Role in Reaching Mass Adoption - TOKEN2049 London 2022

good afternoon hello everybody thanks for coming here and it's pleasure seeing you all at token 2049 I'm going to talk about crypto regulations why you know it's becoming very very important right now for every project built on different blockchains to comply with regulations and what scallop is building and what scallops role in bringing crypto to mass adoption uh when it comes to um crypto regulations I mean we have why Banks and Regulators are so reluctant to accept crypto why they are implying us to follow through so many regulations right now because well if you see all the assets seven thousand seven thousand five hundred crypto assets built on binance or ethereum polygon avex Solana well all the tokens people who are old in those tokens are Anonymous none of them have done kyc KYB no source of funds no source of wealth no kyt and no peps no sanctions and no travel rules as well no fatf and Banks and Regulators are very very clear that until and unless you know whatever you know even even the market is down when people selling crypto they're stored in usdt end of the day if you want to buy a coffee if you want to buy a grocery or anything we have to pay in Fiat the so-called crypto cards everything they sell crypto and storage and affiate in a prepaid card and they let you buy the goods but to convert the crypto to Fiat banks will only accept the funds which are past these clear regulations if they're not passed they won't accept it and this is the reason why you know Regulators countries and Banks realizing no there's a lot going on a lot of rug pulls a lot of scams and people are losing money and we have to make sure that these regulations are enforced on crypto industry so that you know funds can be transferred properly into the Fiat so that you know people can use them in real-time lives and how it will be uh how scallop what scallop is building to make sure of the mass adoption is by creating scallops on blockchain so what we have decided is there is no proper infrastructure exist where all these regulatory checks can happen so we went ahead and created first ever fully regulated blockchain where the core consensus is equipped with core kyc AML peps sanctions kyt and fetf modules that if a user wants to open a wallet or do any activities inside this blockchain it's fully regulated they have to pass through these steps to do any kind of activities on scallop chain and it is built on both temperament and sorry about the countries with the slides so it's it's built on both tender mint and ethermine so we are both Cosmos and alien compatible blockchain and the core consent is equipped with core kyt and kyc AML modules and the way it works is scallop chain is you know it's a Byzantine tolerance system where we provide different kind of regulatory services for example if somebody wants to Mint a token on scallop chair the token becomes a regulated token that means a token can only be sent and received between two regulated wallets you can't send these tokens to other wallets if somebody wants to build on scallop chain they have to go through KYB the directors have to go through kyc and they have to have AML policy complaints policy it's very much like you walk into a bank and try to open a business account or a personal account so we're literally brought all the rules of banking ecosystem on a blockchain and to create any kind of activities inside this it's fully regulated and what happens like as I mentioned before we are AVM compatible blockchain and you might ask a question Raj can we add scallop train to metamask yes you can add scallop chain to metamask but you can't send the tokens from scallop wallet to metamask because scallop chain don't know the address so for that user have to log into scallop wallet they have to pass through two-factor authentication and then they have to click a button called White list and address and then it will ask them to connect to metamask or Google Chrome or like you know a coinbase wallet or wallet connect and then they can select the address they want to White list and they act they have to accept several legal policy terms and conditions then that address will be added to the user identity in scallop chain and they can send their tokens from scallop wallet to the metamask wallet but the tokens are in scallop chain in metamask not in other chain how they move the tokens from other blockchain like ethereum or binance to scallop Chinese they have to go through something called substation which is created by tin remit for scallop these are like regulatory modules based inside the system so what happens is when a user connects his wallet from metamask to scale a bridge it will check the wallet for white list whether it's whitelisted or not and we use Channel analysis elliptic as well in the inside the system what happens here is it will check the address up to 100 wallets in the back side for dark web connections CTF it got any kind of AML marks any single hit that transaction will be rejected once the wallet is cleared of all the AML checks then only the user can move the funds from um scallop I mean ethereum wallet ethereum chain to the scallop chain on the metamask and to do all these activities inside the scallop chain to do the kyc to do the AML we use our great partner thumbs up to do all these transactions and we use them to collect the data and then you feed into the consensus mechanism where we will feed the data into the system and restore it and we also share the information with the channel analysis of other partners where we can well they know the addresses on channel analysis and we can aggregate them saying that these addresses belong to this user it's kind of a data refinement which can be used in the future for more security and for more things and also this is how it looks like as I told you on scallop chain people can log into the scallop faucet and then they can download the tokens and then we have the white list this is how white list will happen and that's the bridge where users can move their tokens from ethereum binance or polygon or other AVM compatible blockchains to scallop chain and this is a quick demo how it will happen users can download scallop wallet and it will ask them to do all the details and we have we have a two-factor authentication as well user have to fill the details once this once it is passed we will use some we are using some sub to verify the data once the data is verified we do facial verifications kyc peps sanctions and everything we do Dynamics as well and once it is all passed user will get an option um to uh saying that congratulations you have passed and then he will get a wallet address and the wallet address happen to have an iban on it we are the first ever project to create a regulator blockchain on which we are offering banking services directly on a blockchain this is how it looks like what you're saying is a crypto wallet on a scallop chain where user got wallet along with an iband number and this is what it is we are providing to the index system and how it works is this is the next level for example exchanges we're talking about we're talking about custodians we're talking about Andre offering people um they can use scale they can integrate scallop SDK services and they can provide banking services directly on the chain to their users like custodians like let's take fire blocks copper the Fiat custody to provide so sorry they are the crypto custody to provide create Services they have partnered with clear Junction singlet and then we have like BCB here as well so these guys are partnering with the banks to provide banking services but they can also add scallop chain and they can provide Fiat custody on the chain to their customers as well and the way it works is like this let's say um like let's take an example of a cool coin by integrating scallop chain on the top left side you can see a usdt how it looks like when you click on a usdt you will see usually the deposit on the right side Omni ERC TRX your deposit address because scallop token is an e-money token right now when they click on the pound and Euro on the right side they can see scallop chain and they got an eye band and they got the X address right over there so institutions like exchanges on-rampers custodians they don't have to partner with banks anymore they can add scallop chain to their ecosystem and if the users pass kyc AML already they can access scallop Chain Services which are banking services directly in their ecosystem and this makes them not to go through any kind of stringent regulations by partnering with us we will take care of the regulations we will take care of issuing all the banking services to their users and of course how we are doing coming to the licenses we are EMD in UK we are EMD in Europe we also have a crypto license from Estonia and we are a full MSB license holder in Canada and we are the fifth company to have the water license in Dubai as well and we are in process of getting our Global blockchain first ever blockchain license from angular and we are almost halfway through our International banking lessons which allows scallop to provide Global I belts to worldwide customers on a blockchain in a regulated ecosystem that's very much about us and I want to give you a bit of information on how this will be used in different areas I have eight minutes so when you're saying here when a user do the onboarding process um in the end of the process we have seen there is a wallet with an iband number so let us see what happens if a user sends 50 euros to this iband number when a user sent 50 euros to this iban on the blockchain what happens is once the blockchain receives this 50 euros it meant 50 e-money tokens right away and this is the scallop is the first project created e-money tokens on an ecosystem as per Mika rules of 2023 which is coming in next year well thanks to you love being in the crypto Mika I mean Mika eliminated non-europe stable coin rules this year but it's very common it's coming very very soon that every stable coin coming must have hard packed one is to one with respect to the real Assets Now we have usdt 75 it is not accepted anymore and to have this hard packed what happens here is when a user sent 100 pounds the 100 pounds will be converted immediately as e-money tokens and they are deposited in the user now user can send these 100 e-money tokens on chain from Ox to his friend or a client or anybody on the other Ox the real funds move from his eye band to that user iban as well so they're hard-packed one is to one as per Mika rules and also they are backed by a bank account in the back and the funds are fully secured as well and this is how these e-money tokens will change the way we are using users can settle instantaneously all the funds and these exchanges can add scale up chain to the ecosystem and support Fiat instantaneously and even we are a layer one you can we are coming as a layer two to existing blockchains like ethereum we're talking with some other partners like mobile network Moonbeam where by adding scallop apis users can comply and get regulated and can provide Financial Services I will give another example let's take the travel rule travel rule is already implemented in Canada Singapore Dubai it's coming very soon in Europe as well as per maker regulations so what is travel rule is when somebody is sending crypto from their wallet to a different wallet they have to tell to whom they are sending I can say I'm sending 100 USD to Mickey Mouse or Donald Duck but I mean they don't ask you who they are but very soon they will be asked you to say you know submit some proofs or documentation by having a very detailed data of the username the user data and everything by adding scallop API into the record system for example tomorrow I say coupon you can add scallop API and then whenever a user sending a 100 usdt to an external wallet they can send they can say oh I'm sending it to Mickey Mouse our API will tell them hey that's not matched and they can change the name they have to change the name and that makes them travel compliant as well so by what by building on scale up you are working as you you are complying with regulations and we help you to become regulations and then you can provide a lot of financial services as well and not just that how many projects in crypto right now have crypto licenses very very few because they're built on ethereum they build on binance they built on polygon they built another blockchain got building on scallop because we do full-fledged KYB we do kyc we do all the checks we do we want them to have a compliance policy AML policy they can share scallop Global DLT license they can go out and say that hey we have a crypto license to provide blockchain services on scallop chain because we are sharing their license that makes them to be regulated that makes them to be compliant and that makes them to be travel compliant as well so we are here building a regulated infrastructure which helps businesses when regulation comes in place in one year they don't know what to do they don't know how to comply but by adding scallop apis you can become a regulated institution as well and then you can provide regulated Services when we have a regulated ecosystem it opens a new door to provide lots of service on it like you can do reads you can do shares you can do you can Access Financial Services if somebody wants to build a uh a prepaid card for their own token by adding scallop apis now you can issue a wallet you can sure I went to a user you can issue a card and then you can also have your own token listed over there and they can swap it they can sell it and then they can use the card you can build a Neo Bank on ethereum you want to become a build a new bank for um let's say Ave tokens or compound tokens you can build a Neo Bank just leveraging or scallop chain because we are helium compatible even we are layer one we are becoming as a layer two to all the users um so that's very much about us and you know uh so we are officially launching scallop chain testnet today uh it's available on scalabex.com and scallopchain.com please go ahead and then have a look at it please download our scallop wallet it's a test net you will it will it will take you through kyc AML checks please use it and then you will get the wallets from faucet as I showed you before you can get um I can't go yeah you can from uh from the faucet you can get test scallop tokens you can get test Euros you can get test pounds you can get test dollars and you can move them around you can have a play and then we will be launching devnet next year of Technology under is under audit right now we are speaking with several big people once the audit passes then we will launch the devnet and you can use scallop chat services and along with this um thank you very much for the opportunity guys and I'll see you soon thank you thank you very much [Applause]