A recent paper published on the Bank for International Settlements (BIS) website highlights the risks that permissionless blockchain networks, like Ethereum, pose for banks. The Basel Committee on Banking Supervision (BCBS) issued a working paper discussing the challenges of permissionless blockchains and ways to mitigate them. The paper explores governance, technology, compliance, and other risks associated with this new technology. It emphasizes the risks faced by banks using permissionless blockchains, such as money laundering, terrorism financing, and settlement finality concerns. The paper suggests various mitigations, including business continuity planning and technology-driven transaction controls. It also proposes appointing a designated entity to control access to crypto assets and implementing privacy-preserving identity verification tools like zero-knowledge proofs. While technology-based solutions are still developing, the paper encourages further examination of potential solutions to address these risks in banking. Read more AI-generated news on: https://app.chaingpt.org/news