World Liberty Financial, a new decentralized finance (DeFi) project backed by the Donald Trump family, has opened its Know Your Customer (KYC) verification process on its website. The project, which aims to offer financial services without traditional intermediaries, made the KYC process a requirement for further access to specific project details.
Donald Trump’s World Liberty Financial KYC Verification Goes Live
In a recent post by Donald Trump, it was revealed that World Liberty Financial is now all set with their KYC procedure and the platform is part of an overarching project to establish the U.S as the hub of cryptocurrencies. This particular project is a continuation of the campaign by Trump to actualize his vision of “Make America Great Again” again inviting people to join the whitelist for early participation.
I promised to Make America Great Again, this time with crypto. @WorldLibertyFi is planning to help make America the crypto capital of the world! The whitelist for eligible persons is officially open – this is your chance to be part of this historic moment. Join:…
— Donald J. Trump (@realDonaldTrump) September 30, 2024
The KYC verification process is required for users who want to learn more about the project or those who want to buy the platform’s governance token, WLFI. In the U.S., participants also have to fulfill the definition of accredited investors in order to adhere to the legal requirements.
KYC mostly entails the identification of the user through identification documents which could include a passport, a driving permit and so on to satisfy the anti-money laundering (AML) standards.
WLFI Token and Governance Model
WLFI, the governance token of World Liberty Financial was confirmed during a live X Spaces event earlier this month. The WLFI tokens shall be non-fungible and shall be dedicated for governance only whereby the holders will be in a position to make proposal and casting votes regarding the future of the platform.
Unlike other cryptocurrencies, WLFI does not offer profit or loss or even a share in the platform.
Based on the stated distribution of tokens, the public sale will have 63% of WLFI, 17% for rewards and incentives and 20% for team compensation. The tokens will only be sold to accredited investors which means the general public will not be allowed to invest.
Political and Regulatory Concerns
The Trump-backed project has not only attracted attention due to its political connections but also due to the issue of its regulatory risk. Charles Hoskinson, the creator of the Cardano blockchain, said that this could be risky because it may catch the eye of US authorities, including the Department of Justice and the SEC.
He also explained that tieing a DeFi platform with political affiliacy is dangerous as this may polarize the perception of the project within the crypto space. This is because World Liberty Financial is a political project, and such DeFi platforms may have issues that other platforms do not have.
Criticism has followed the launch of World Liberty Financial as well. Ed Krassenstein, a Crypto enthusiast, decided to share his opinion on the matter via X. ”If you were for crypto then you would be promoting decentralized criptocurrency rather than your family’s business”.
Besides this, Colin Talks Crypto questioned when and why Trump decided to release a DeFi protocol. In his X post, Colin wrote,
“I think it’s unwise for you to release a DeFi protocol. You should limit yourselves to making crypto safe for the crypto space. The majority of people will end up losing money during the next bear market and you will be the one that they will pin the loss on. Not something a president should be connected with.”
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/donald-trumps-world-liberty-financial-kyc-verification-goes-live/
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