Banks and financial service providers must by law prevent financial crime including tax evasion, money laundering, bribery, corruption, fraud and terrorist financing. Yes weâ(TM)re seeing our largest banks support crypto currencies such as Bitcoin. A fundamental aspect of Bitcoin is that it by design prevents the traceability of transactions, i.e. it is impossible to trace how you came in possession of the currency, whether legit or otherwise. This, alongside their high valuation, make the crypto currencies super attractive by criminals of all sorts.
Whilst technically perfectly possible, even logical, to establish a crypto currency designed for traceability, the one that is winning hearts and mind in Wall St. Isnâ(TM)t. Why?
With all the regulations and mandated processes such as KYC ( Know your Customer), screening for politically exposed persons (PEPs) and other steps banks must take to prevent financial crime, it is a conundrum how these currencies are being allowed into the âkosherâ(TM) financial markets and seemingly not causing concern for the regulatory bodies.
Are regulators buying time or is this simply too lucrative a business for the banks not to be allowed a slice of? Whatever the answer, unless we see a change in direction donâ(TM)t be surprised for the next decades to become the golden era of financial crime.