What are Verified Sources of Funds?

Created by Ethos Support, Modified on Wed, 8 Feb, 2023 at 7:33 PM by Ethos Support


Bad actors in the cryptocurrency space are a problem. And regulators often struggle to identify legitimate companies. When you open an account at the bank they verify your identity. But on the blockchain, nobody is attesting to the legitimacy of a transaction. 

However, blockchains can be used to create a safer and more ethical financial ecosystem through a standard Ethos calls, Verified Source of Fund (VSF). Using VSF, entire financial structures can be moved to the blockchain, allowing good actors to access its full potential. VSF records an ID with the block transaction for source of funds, protecting consumers while keeping institutions honest through auditable histories. 

This holds institutions to a high regulatory standard while bridging the existing financial system with the rapidly growing digital economy. VSF is an important proposal, that can bring industry level regulators standards to the digital assets space. Helping to create an open, safe and fair financial ecosystem for everyone.


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