Basel Committee on Banking Supervision: Banks face multiple risks when conducting transactions on permissionless blockchains

The Basel Committee on Banking Supervision (BCBS) pointed out in its latest report that banks face multiple risks when conducting transactions on permissionless blockchains, including challenges in money laundering, terrorist financing, operations and security, governance, law, settlement finality, and compliance. BCBS, part of the Bank for International Settlements (BIS), is the world's main standard-setting body for bank prudential supervision. It pointed out that some risks arise from the blockchain's reliance on unknown third parties, which makes it difficult for banks to conduct due diligence and supervision. In addition, banks also face political uncertainty. New legislation may change the behavior of validators and make the blockchain itself operationally unstable. (Coindesk)