The Sandbox, a metaverse platform, has unveiled its decision to implement know-your-customer (KYC) verification for its staking process. As of August 3, the platform will require verified users to participate in staking and receive staking rewards. In contrast, Unverified users will be limited to withdrawal-only mode. The move aims to enhance user security and compliance, ensuring that participants' accounts are verified before engaging in staking or claiming income, as stated by the developers of The Sandbox.
Data from blockchain analytics firm Messari indicates that at present, around 123 million SAND tokens, the platform's native cryptocurrency, are staked by users, representing approximately 6.7% of the token's circulating supply. The requirement for KYC verification aligns with a broader trend of regulatory compliance efforts within the cryptocurrency industry.
The US Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase earlier this year highlighted that SAND was among the cryptocurrencies considered securities by the regulator. The SEC's argument was centered on the belief that public information shared by The Sandbox had led S AND holders to View the tokens as investments in the development of the Sandbox Protocol, thereby benefiting from the project's growth and value appreciation.
The history of SAND dates back to its deployment on the Ethereum blockchain in 2012 by San Francisco-based gaming company Pixowl. In 2018, Animoca Brands, a Hong Kong-based entity, acquired Pixowl through its subsidiary TSB Gaming. Animoca Brands h ad envisioned leverage blockchain technology to construct a 3D virtual universe within The Sandbox platform. Since the lawsuit against Binance and Coinbase, Animoca Brands co-founder Yat Siu has criticized the lack of consistency in SEC regulations and praised Hong Kong's evolving approach to blockchain technology.
