ENHANCED DUE DILIGENCE SYSTEM FOR CRYPTOCURRENCIES

Abstract

A digital wallet verification system in a blockchain ecosystem providing enhanced due diligence for cryptocurrency. The system includes receiving a first profile and a digital wallet. The system determines a status for the first profile, based on a verification information. Further, a score for the digital wallet is calculated based on the status of a second profile performing a blockchain transaction in the digital wallet associated with the first profile. The system provides certain private KYC information of the second profile to the first profile and indicating the status of the first profile, the second profile and/or the score associated with any digital wallet publicly on the internet at large.

Description

Claims

1. A digital wallet verification system (200) operatively coupled to a blockchain ecosystem providing enhanced due diligence for cryptocurrency, the system comprising: a receiving module configured to: receive a first profile and at least one digital wallet from at least one blockchain, associated with the first profile; and receive at least one of a mobile number, an email address, a biometric information, an authentication information, and a third-party user ID, from the first profile;a verification module in communication with the receiving module and configured to determine a status for the first profile, based on a verification information;a scoring module in communication with the receiving module configured to calculate a score for the digital wallet associated with the first profile;wherein the score is calculated based on the status of a second profile performing a blockchain transaction in the digital wallet associated with the first profile;a Customer Due Diligence (CDD) module in communication with the receiving module and the verification module configured to provide certain private KYC information of the second profile to the first profile, upon receiving a blockchain transaction from the second profile in the digital wallet associated with the first profile; andan information module in communication with the receiving module and the verification module configured to indicate the status of the first profile, the second profile and/or the score associated with any digital wallet publicly on the internet at large.

2. The system as claimed in claim 1, comprising a registration module configured to: determine ownership for the digital wallet (108) associated with the first profile, wherein the determining comprising: processing the blockchain transaction, wherein the blockchain transaction is indicative of having a cryptocurrency amount transferred from the digital wallet associated with the first profile; orsubmitting a cryptographically verifiable document (CVD) or verifiable credentials, wherein the CVD is indicative of verifying ownership of the digital wallet by the first profile.

3. The system as claimed in claim 1 wherein, the verification module is configured to: verify the identity of the first profile based on the verification information;wherein the verification information comprising the CVD; andupdating the status of the first profile, wherein the status indicates successful submission of the CVD by the first profile.

4. The system as claimed in claim 1 wherein, the verification module is configured to: verify the identity of the first profile based on the verification information, wherein the verification information comprising a Know-Your-Customer (KYC) information, biometric information, MSISDN, social media handle, email or other GUID;updating the status of the first profile, wherein the status indicates successful submission of know-your-customer facility, a biometric information, an MSISDN, a social media handle, an email or other GUID by the first profile.

5. The system as claimed in claim 1 comprising: a notification module configured to provide a notification to the first profile, wherein, the notification comprising an information of the second profile, the status of the second profile; receive a contact information of the second profile from the first profile and transmit a message to the second profile using the contact information for updating the status and/or associate a plurality of digital wallets to the second profile.

6. The system as claimed in claim 5, wherein the notification module is configured to: provide a notification to the second profile, wherein, the second profile views the notification comprising a certain public information of the first profile and the status of the first profile;receive a contact information of the first profile from the second profile andtransmit a message to the first profile using the contact information for updating the status.

7. The system as claimed in claim 5, wherein the notification module is configured to: transmit a message to one of an external agency or an institution after a predetermined criteria if the status is not updated.

8. The system as claimed in claim 5, wherein the notification module is configured to: tagging the digital wallet or the status of profile as potentially associated with blacklisted transaction upon at least one of: (a) determining that the digital wallet processing the blockchain transaction in the cluster of related transactions is contained on a public or private blacklist;(b) determining that the profile associated with digital wallet processing the blockchain transaction in the cluster of related transactions is associated with a sanctions list or sanctioned country; and(c) determining that the profile associated with digital wallet processing the blockchain transaction in the cluster of related transactions is associated with a transaction amount over a predetermined threshold and the status of the profile is not updated after the predetermined criteria.

9. The system as claimed in claim 1, wherein the scoring module is configured to take into consideration risk of country, risk of amounts, risk, and other risk as per guidelines of regulators for calculating the score.

10. The system as claimed in claim 1, comprising of a transaction module configured to: exchange public and private transaction information between the first profile and the second profile;wherein the private transaction information comprises at least one of, tax information, invoice, and transaction amount provided by the second profile; andwherein the public transaction information comprising at least one of, jurisdiction, tax amount, transaction status, tax jurisdiction.

11. The system as claimed in claim 1, wherein the CDD module is configured to provide certain private KYC information of the first profile to the second profile, upon receiving the blockchain transaction from the second profile in the digital wallet associated with the first profile.

12. A method for digital wallet verification in a blockchain ecosystem providing enhanced due diligence for cryptocurrency, the method comprising: receiving, a first profile and at least one digital wallet from at least one blockchain, associated with the first profile;receiving, at least one of mobile number, email address, biometric information, authentication information, third party user ID, and alike from the first profile;determining, a status for the first profile, based on a verification information;calculating, a score for the digital wallet associated with the first profile;wherein the score is calculated based on the status of second profile performing a blockchain transaction in the digital wallet associated with the first profile;providing, certain private KYC information of the second profile to the first profile, upon receiving the blockchain transaction from the second profile in the digital wallet associated with the first profile;indicating, the status of profile and/or the score associated with any digital wallet publicly on the internet at large.

13. The method as claimed in claim 12, comprising: determining ownership for the digital wallet associated with the first profile, comprising: processing the blockchain transaction, wherein the blockchain transaction is indicative of having a cryptocurrency amount transferred from the digital wallet associated with the first profile; orsubmitting a cryptographically verifiable document (CVD) or verifiable credentials, wherein the CVD is indicative of verifying ownership of the digital wallet by the first profile.

14. The method as claimed in claim 12 wherein, comprising: verifying the identity of the first profile based on the verification information;wherein the verification information comprising of the CVD,updating the status of the first profile, wherein the status indicates successful submission of the CVD by the first profile.

15. The method as claimed in claim 12 wherein, comprising: verifying the identity of the first profile based on the verification information;wherein the verification information comprising of a Know-Your-Customer (KYC) information, biometric information, MSISDN, social media handle, email or other GUID;updating the status of the first profile, wherein the status indicates successful submission of know-your-customer facility, biometric information, MSISDN, social media handle, email or other GUID by the first profile.

16. The method as claimed in claim 12, comprising: providing a notification to the first profile, wherein,the notification comprising of an information of second profile, the status of second profile; receiving a contact information of the second profile from the first profile andtransmitting a message to the second profile using the contact information for updating the status and/or associate a plurality of digital wallets to the second profile.

17. The method as claimed in claim 16, comprising: providing a notification to the second profile, wherein,the second profile views the notification comprising of a certain public information of the first profile, the status of the first profile;receiving a contact information of the first profile from the second profile andtransmitting a message to the first profile using the contact information for updating the status.

18. The method as claimed in claim 16, wherein the method comprising transmitting a message to an external agency or institution after a predetermined criteria if the status is not updated.

19. The method as claimed in claim 16, wherein the method comprising: tagging the digital wallet or the status of profile as potentially associated with blacklisted transaction upon at least one of: (a) determining that the digital wallet processing the blockchain transaction in the cluster of related transactions is contained on a public or private blacklist;(b) determining that the profile associated with digital wallet processing the blockchain transaction in the cluster of related transactions is associated with a sanctions list or sanctioned country; and(c) determining that the profile associated with digital wallet processing the blockchain transaction in the cluster of related transactions is associated with a transaction amount over a predetermined threshold and the status of the profile is not updated after the predetermined criteria.

20. The method as claimed in claim 12, wherein the calculating the score taking into consideration risk of country, risk of amounts, risk, and other risk as per guidelines of regulators for calculating the score.

21–22. (canceled)