One-coin blockchain problem

In a recent expert article, we introduced the one-coin blockchain. According to FINMA Guidance 02/2019 [1], full identification will be requested from third parties in certain situations. How is this problem related to the one-coin blockchain? An understanding of this problem is important not least because the FINMA requirement is related to what is known as FATF Recommendation 16 [2].

It should first be pointed out that with the one-coin blockchain no specific relationship exists between the credit balance documented in the blockchain and the owner of the coin. As explained in [3], the coin belongs to the person in possession of the key to the last block in the chain. This is in contrast to a bank account balance, which requires an explicit, formally documented relationship between the owner of the account balance (the “beneficial owner”) and the account. Identification of the account balance is a problem that all those who have opened a bank account are sure to have encountered. The relationship between the identified person and the account is the next problem.