AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'. Watch the full video here

Less Ads, More Data, More Tools Register for FREE
AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'
AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'View Video
GraniteShares making investing in US tech stock giants easier with innovative FAANG ETP
GraniteShares making investing in US tech stock giants easier with innovative FAANG ETPView Video

Latest Share Chat

Financial firms and governments deeply sceptical of cryptocurrencies - survey

Tue, 29th Sep 2020 15:00

* Major global survey shows deep scepticism on crypto
remains

* 60% of respondents see crypto as a risk, not opportunity

* Financial firms wary of money laundering, sanctions risks

By Tom Wilson

LONDON, Sept 29 (Reuters) - Financial firms and governments
overwhelmingly see cryptocurrencies as risky, a major survey
found on Tuesday, with the potential for bitcoin and other
digital tokens for use in money laundering and sanctions busting
among the chief worries.

Around 60% of respondents from financial firms, government
and the private sector alike to the survey by the Royal United
Services Institute think-tank and the Association of Anti-Money
Laundering Specialists said cryptocurrencies were a risk rather
than an opportunity. Illicit usage was the major concern.

The findings, one of the most detailed efforts yet to map
out mainstream global views towards cryptocurrencies, lay bare
the depth of scepticism towards the emerging tech.

They suggest an uphill struggle for the crypto industry to
achieve wider acceptance, even as countries across the world
grapple with how to regulate cryptocurrencies. The European
Union will introduce new rules for some cryptocurrencies by
2024, documents showed last week.

The perception of criminal use of cryptocurrencies is
deep-rooted, the survey found. Nearly 90% of respondents from
financial firms said they were worried about crypto being used
to launder money. Over 80% were worried about sanctioned actors
using digital coins to circumvent the formal financial system.

"All respondents accept that cryptocurrencies are vulnerable
to criminals," the survey's authors said.

The extent to which crypto is used for crime is unclear,
with past research by major blockchain analysis firm Chainalysis
this year putting the rate as low as 1% of all transactions.

Still, digital currencies are popular with cyber-criminals,
as the July hack of major Twitter users to reap bitcoin shows.

Cryptocurrencies have also been used for the funding of
militant groups. The U.S. Justice Department said last month it
had targeted efforts by the military wing of Hamas, al Qaeda and
Islamic State to raise funds via cryptocurrencies.

Only a fifth of respondents from financial and other private
firms said they viewed digital coins as an opportunity, the
research found. Among the potential benefits cited was the
possibility crypto could extend access to financial services.

The survey was based on over 550 responses from financial
institutions, law enforcement and financial watchdogs, and legal
and insurance firms. It also tapped the cryptocurrency industry.

(Reporting by Tom Wilson; editing by David Evans)

More News

IN BRIEF: Thesolia sells 16% stake in Star Phoenix to Preceding Max

IN BRIEF: Thesolia sells 16% stake in Star Phoenix to Preceding Max

Today 14:56

Liontrust launches ESG fund, plans to raise GBP150 million in IPO

Liontrust launches ESG fund, plans to raise GBP150 million in IPO

Today 14:55

Nick Train's Finsbury Growth & Income lags as defensives don't pay off

Nick Train's Finsbury Growth & Income lags as defensives don't pay off

Today 14:41

UPDATE 1-Sterling shoots up after U.S. job data, UK election in focus

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv (Updates rates, news, headline. Adds charts)By Joice AlvesLONDON, May 7 (Reuters) - Sterling rose versus the doll...

Today 14:41

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.