KYC Verification Required for The Sandbox Metaverse Staking

According to an announcement that was made on August 3, the staking operations that take place on the Metaverse platform known as The Sandbox will require Know Your Customer (KYC) verification.

Users who have not been confirmed will only have the ability to withdraw funds. According to the data provided by Messari, users have staked a total of 123 million SAND, which accounts for 6.7% of the total supply of the coin.

The developers of Sandbox wrote:

“To enhance user security and compliance, we have implemented KYC verification for our staking process. Our goal is to ensure that our users’ accounts are verified before they can participate in staking or claim their earnings.”

On June 6, it was revealed that SAND was one of 68 cryptocurrencies that the United States Securities and Exchange Commission (SEC) ruled to be securities in its most recent case against Binance and Coinbase.

The SEC’s decision concerned whether or not Binance and Coinbase violated federal securities laws. Pixowl, an online gaming startup based in San Francisco, deployed SAND on the Ethereum blockchain in 2012.

Animoca Brands, based in Hong Kong, made the purchase of Pixowl in 2018 through its subsidiary TSB Gaming, intending to build a 3D metaverse by utilizing blockchain technology.

The SEC makes these claims by referring to a variety of initial public offerings and private sales that have been completed by developers over the years:

“The information TSB publicly disseminated has led SAND holders, including those who have purchased SAND since May 2022, reasonably to view SAND as an investment in and to expect to profit from TSB’s efforts to grow the Sandbox protocol, which, in turn, would increase the demand for and the value of SAND.”

Since the release of the Coinbase lawsuit, Yat Siu, co-founder of Animoca Brands, has criticized the lack of “consistency” in SEC regulations and welcomed Hong Kong’s evolving attitude toward blockchain technology.

Yat Siu’s criticisms come after Yat Siu praised Hong Kong’s developing attitude toward blockchain technology.