Sandbox enforces KYC measures for protocol staking

The Sandbox, a popular metaverse platform, has announced the implementation of Know Your Customer (KYC) verification for its staking processes in a statement made on August 3. This move comes as part of the platform’s efforts to enhance user security and ensure compliance with regulatory requirements.

According to the announcement, only users who have completed the KYC verification process will be allowed to deposit The Sandbox tokens, the native currency of the platform, and claim staking rewards. On the other hand, non-verified users will be restricted to a withdraw-only mode, preventing them from making further deposits.

Recent data from blockchain analytics firm Messari reveals that a significant portion of The Sandbox’s circulating supply, specifically 123 million SAND tokens, equivalent to 6.7% of the total supply, is currently staked by users.

The development team behind The Sandbox expressed their commitment to user security and compliance, stating that the introduction of KYC verification is aimed at ensuring that participants’ accounts are fully verified before they can engage in staking activities or access their earnings.

It is worth noting that The Sandbox’s native token, SAND, has recently come under scrutiny from the United States Securities and Exchange Commission (SEC). The SEC included SAND among the 68 cryptocurrencies it considered securities in its legal actions against major exchanges Binance and Coinbase.

SAND was originally deployed on the Ethereum blockchain in 2012 by Pixowl, a San Francisco-based gaming firm. In 2018, it was acquired by Hong Kong-based Animoca Brands through its subsidiary, TSB Gaming, with a vision to create a 3D metaverse utilizing blockchain technology.

The SEC’s allegations against SAND are related to various initial exchange offerings and private sales conducted by developers over the years. The regulatory body argues that the information publicly disseminated about SAND has led investors to perceive it as an investment with the expectation of profiting from The Sandbox protocol’s growth, thereby increasing the demand for and value of SAND.

Since the lawsuit involving Coinbase, Yat Siu, the co-founder of Animoca Brands, has voiced criticism over the lack of consistency in SEC regulations and has praised Hong Kong’s evolving stance towards blockchain and its potential benefits.

With the introduction of KYC measures for staking, The Sandbox aims to maintain compliance with regulatory standards while offering its users a secure and transparent environment for participating in the metaverse platform. As the metaverse space continues to evolve, adherence to such measures is becoming increasingly essential for long-term success and wider adoption.