Research paper

Know-Your-Customer (KYC) Requirements for Initial Coin Offerings: Toward Designing a Compliant-by-Design KYC-System Based on Blockchain Technology

Using an objective-centered DSR approach, the paper identifies KYC and legal requirements and translates them into system design objectives for a compliant-by-design blockchain-based KYC system for ICOs that automatically enforces KYC regulations to prevent money laundering.

PaperOpen source resource ↗

Overview

Publication metadata and narrative from the current library record.

Authors: Nadine Kathrin Ostern, Johannes Riedel
Year: 2021
Venue: Business & Information Systems Engineering 63(5), 2021, 551-567
Methodology: Objective-centered design science research; identification of KYC/legal requirements; prototype; requirements-evaluation.

blockchaincompliancedesign-science-researchicokyckyc-ico-requirementsregulation

Know-Your-Customer (KYC) Requirements for Initial Coin Offerings: Toward Designing a Compliant-by-Design KYC-System Based on Blockchain Technology

Authors: Nadine Kathrin Ostern, Johannes Riedel
Venue: Business & Information Systems Engineering 63(5), 2021, 551-567
Link: https://doi.org/10.1007/s12599-020-00677-6 (opens in a new tab)

Summary

Artifact

A compliant-by-design blockchain-based KYC system for the conduct of ICOs.

Methodology

Objective-centered design science research; identification of KYC/legal requirements; prototype; requirements-evaluation.

Citations

[1] Nadine Kathrin Ostern, Johannes Riedel. Know-Your-Customer (KYC) Requirements for Initial Coin Offerings: Toward Designing a Compliant-by-Design KYC-System Based on Blockchain Technology. Business & Information Systems Engineering 63(5), 2021, 551-567. https://doi.org/10.1007/s12599-020-00677-6 (opens in a new tab) [2] Source document: Know-Your-Customer (KYC) Requirements for Initial Coin Offerings.pdf

DSR grid

Six dimensions represented in the current paper record.

Problem description

Existing blockchain-based KYC proposals for initial coin offerings (ICOs) ignore the severe penalties for non-compliance, so they are inapplicable when legal KYC requirements cannot be met.

Input knowledge

Gregor & Hevner's descriptive/prescriptive knowledge distinction; KYC/AML regulation (e.g., GwG, GDPR, eIDAS); electronic identity (eID).

Research process

Objective-centered design science research: identification of KYC and legal requirements, translation into design objectives, a prototype, and a requirements-based evaluation.

Key concepts

Blockchain, distributed ledger, know-your-customer, anti-money-laundering, initial coin offering.

Solution description

A compliant-by-design blockchain-based KYC system for ICOs that automatically enforces KYC regulations. Solution-space representation: Instantiation (prototype) driven by design objectives (model / nascent design knowledge).

Output knowledge

A set of design objectives derived from KYC and legal requirements for a compliant-by-design ICO KYC system.

Design knowledge

Directly linked concepts, grouped by their represented design-knowledge category.

Design Objective

Design Objective1

Design Objective

design-knowledge/kyc-ico-requirements-do

DO - Design objectives for a compliant-by-design ICO KYC system

The KYC system's design objectives are derived from KYC and legal requirements and include, among others:

compliancedesign-objectiveicokyc+2

Paper design map

The default semantic design map canonicalizes stored design relationships; Raw links retains the complete technical Markdown-link view.

Design-knowledge map

1 stored concepts / 0 canonical semantic relationships

Concept types

Show relationship labels

Publication metadata

Additional metadata represented in the current library record.

Show additional metadata

{
  "type": "paper",
  "title": "Know-Your-Customer (KYC) Requirements for Initial Coin Offerings: Toward Designing a Compliant-by-Design KYC-System Based on Blockchain Technology",
  "description": "Using an objective-centered DSR approach, the paper identifies KYC and legal requirements and translates them into system design objectives for a compliant-by-design blockchain-based KYC system for ICOs that automatically enforces KYC regulations to prevent money laundering.",
  "resource": "https://doi.org/10.1007/s12599-020-00677-6",
  "authors": "Nadine Kathrin Ostern, Johannes Riedel",
  "year": 2021,
  "venue": "Business & Information Systems Engineering 63(5), 2021, 551-567",
  "methodology": "Objective-centered design science research; identification of KYC/legal requirements; prototype; requirements-evaluation.",
  "dsr_grid": true,
  "dsr_solution_space": "Instantiation (prototype) driven by design objectives (model / nascent design knowledge).",
  "tags": [
    "kyc-ico-requirements",
    "kyc",
    "ico",
    "compliance",
    "regulation",
    "design-science-research",
    "blockchain"
  ]
}

Citations

[1] Nadine Kathrin Ostern, Johannes Riedel. Know-Your-Customer (KYC) Requirements for Initial Coin Offerings: Toward Designing a Compliant-by-Design KYC-System Based on Blockchain Technology. Business & Information Systems Engineering 63(5), 2021, 551-567. https://doi.org/10.1007/s12599-020-00677-6 [2] Source document: Know-Your-Customer (KYC) Requirements for Initial Coin Offerings.pdf

{ "type": "paper", "title": "Know-Your-Customer (KYC) Requirements for Initial Coin Offerings: Toward Designing a Compliant-by-Design KYC-System Based on Blockchain Technology", "description": "Using an objective-centered DSR approach, the paper identifies KYC and legal requirements and translates them into system design objectives for a compliant-by-design blockchain-based KYC system for ICOs that automatically enforces KYC regulations to prevent money laundering.", "resource": "https://doi.org/10.1007/s12599-020-00677-6", "authors": "Nadine Kathrin Ostern, Johannes Riedel", "year": 2021, "venue": "Business & Information Systems Engineering 63(5), 2021, 551-567", "methodology": "Objective-centered design science research; identification of KYC/legal requirements; prototype; requirements-evaluation.", "dsr_grid": true, "dsr_solution_space": "Instantiation (prototype) driven by design objectives (model / nascent design knowledge).", "tags": [ "kyc-ico-requirements", "kyc", "ico", "compliance", "regulation", "design-science-research", "blockchain" ] }