Blockchain may increase money laundering risk, warns Hong Kong central bank

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Blockchain may increase money laundering risk, warns Hong Kong central bankBlockchain may increase money laundering risk, warns Hong Kong central bank

The headquarters of the Hong Kong Monetary Authority at the International Finance Centre in Central, Hong Kong

Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), has issued an assessment of blockchain technology, including a cautionary note that it may increase the risk of money laundering, reports Bloomberg.

The study released Friday says the privacy offered by some blockchain platforms may aid unlawful activities like ransom payments, the sale of illegal products and the trafficking of criminal gains.

The HKMA report does underscore the cost- and time-saving qualities of blockchain, but also warns that there are regulatory, risk management and legal issues associated with the technology predicated on a shared network of transaction records.

Shu Pui Li, the central bank’s executive director for financial infrastructure, said as part of a presentation for the HKMA Fintech Day, “[Blockchain offers] good potential, but a lot of things need to be addressed.”

“The most painful issue is legal. A lot of legal issues.”

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Read more ... source: CoinReport

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