- Lawmakers fear permissionless blockchains could turbocharge money laundering.
- But traditional AML policies require intermediaries — the very thing lacking in decentralised systems.
- Researchers at the Bank for International Settlements say there’s a way to combat money laundering without forcing blockchains to collect user information.
In a new paper, researchers at the Bank for International Settlements proposed a solution to a problem that has long bedeviled the crypto industry: how to enforce money laundering regulations on permissionless blockchains.
Blockchains’ key attribute — their permissionless nature — has long been their greatest weakness, according to sceptics in public policy circles.
Just like surfing the web, transacting on a blockchain is open to anyone with an internet connection, no signup required.
Blockchains promise to level the financial playing field and “bank the unbanked.” But they have also…
