Basel Banking Supervisory Committee: Banks Trading on Unlicensed Blockchain Face Multiple Risks

The Basel Committee on Banking Supervision (BCBS) pointed out in its latest report that banks trading on permissionless blockchains face multiple risks, including money laundering, terrorist financing, operational and security challenges, governance, legal, settlement finality, and compliance. The BCBS, a part of the Bank for International Settlements (BIS), is a leading global standard-setting body for banking supervision, highlighting that some risks stem from blockchain's reliance on unknown third parties, making it difficult for banks to conduct due diligence and oversight. Additionally, banks face political uncertainty. New legislation may alter validator behavior, making the blockchain itself operationally unstable. (Coindesk)