According to a statement released on August 3, 2023, The Sandbox, a well-known metaverse platform, has added Know Your Customer (KYC) authentication to its staking processes. The purpose of this calculated action is to improve user transparency, security, and compliance in The Sandbox ecosystem.

Verified Users Are Allowed to Stake

The official statement states that the ability to deposit SAND tokens—The Sandbox’s own digital currency—and subsequently claim staking rewards would only be available to confirmed users. By requiring KYC, participants in staking operations may be guaranteed to be correctly recognized and to be in compliance with all applicable regulations.

As part of this KYC deployment, users who have not been verified will be placed in a “withdraw-only mode,” which restricts their ability to participate in staking activities to just making withdrawals from their accounts.

Users in The Sandbox ecosystem are currently staking almost 123 million SAND coins, according to statistics recently released by blockchain analytics company Messari. This amounts to about 6.7% of the total amount of SAND tokens in circulation.

A Synopsis of the Sandbox

The journey of SAND tokens started in 2012 when San Francisco-based game startup Pixowl put them on the Ethereum network. The idea of the metaverse, however, started to take shape in 2018 when Hong Kong-based Animoca Brands purchased Pixowl through its subsidiary TSB Gaming. This acquisition signaled the beginning of an ambitious project to use blockchain technology to build a 3D metaverse.

It’s important to remember that in a previous development, the US Securities and Exchange Commission (SEC) designated 68 cryptocurrencies as securities during its legal actions against well-known cryptocurrency platforms like Binance and Coinbase.

The Sandbox’s use of KYC protocols demonstrates its dedication to maintaining a safe and legal environment, all the while providing users with the opportunity to interact with the metaverse and stake SAND tokens.