The Sandbox recently announced the implementation of Know Your Customer (KYC) authentication for its stakeout processes. According to the August 3 announcement, only verified users will be able to deposit and claim staking rewards on the platform’s native tokens, known as SAND. However, unauthenticated users can only revoke their deployed SAND. They cannot make further deposits.
The Sandbox Metaverse introduces KYC
This move comes as the platform aims to improve user safety and compliance. By requiring KYC verification for staking, The Sandbox aims to ensure users’ accounts are verified before they can participate in staking or claim their earnings. Currently, 123 million SAND has been deployed by users. This corresponds to 6.7% of the circulating supply.
It is worth noting that the SEC classified SAND as a security in its recent lawsuits against Binance and Coinbase. Additionally, 67 other cryptocurrencies were also considered securities. This is because the SEC claims that The Sandbox is disclosing information. The SEC alleged that this information led SAND holders to consider the token an investment. Therefore, SAND holders could expect to benefit from the platform’s efforts to grow the Sandbox protocol, which would increase the value of SAND.
Since 2012, The Sandbox has made progress in building a 3D metaverse using blockchain technology. Pixowl initially implemented The Sandbox. Then, in 2018, Hong Kong-based Animoca Brands acquired Pixowl through its subsidiary TSB Gaming.
Amid the regulatory scrutiny cryptocurrencies face, Animoca Brands co-founder Yat Siu has expressed concern over the lack of consistency in SEC regulation. He also praised Hong Kong’s changing attitude towards blockchain.
As The Sandbox continues to evolve and draw users to its metaverse, the introduction of KYC verification for staking processes is seen as a proactive step toward compliance and security for its growing community of users. The platform’s commitment to providing a safe environment is a testament to its commitment to building a thriving metaverse ecosystem.
