Flare Partners with Red Date Technology to Introduce a New Identity Verification System for Mainland Chinese Visitors in Hong Kong

The system, which uses decentralized identity technology, allows users to go through KYC checks while keeping their personal information private

Hong Kong-based blockchain company Flare has introduced a new identity verification system for Mainland Chinese visitors, in partnership with Red Date Technology.

The system utilizes decentralized identity technology, enabling users to complete KYC checks without revealing their personal information, according to a press release from Flare. KYC, or “know your customer,” is a process used by financial institutions to verify the identity of their clients, typically to comply with regulations.

The initiative involved two test trials. The first trial allowed users to sign up anonymously for a regulated stablecoin app. The second trial enabled users to purchase tokenized financial products — digital versions of traditional assets — using stablecoins.

The project could potentially address issues of privacy and compliance, especially in the financial services sector in China, according to Hugo Philion, co-founder of Flare.

Hong Kong is preparing new regulations that will permit public blockchain-based digital currencies in the city.

If the system is fully launched, Mainland Chinese visitors could legally hold wallets on public blockchains and carry out transactions with stablecoins, such as the Hong Kong Dollar-pegged stablecoin HKDA. This would be a first for many visitors, who usually have to disclose personal details in order to use digital financial services.

As Hong Kong receives nearly 50 million annual visitors from Mainland China, this partnership positions Flare as an early entrant in China’s emerging regulated digital asset market.