PANews reported on August 29 that according to CoinDesk, the Bank for International Settlements pointed out in a latest working paper that banks that conduct transactions on permissionless blockchains face multiple risks including money laundering, terrorist financing, settlement finality, etc. Other risks include operations and security, governance, law and compliance. The working paper also stated that technologies are being developed to address some risks (especially privacy risks) and zero-knowledge proof is mentioned as a potential solution.
Last month, the committee approved a framework for cryptocurrency risk disclosures by banks, which must be implemented by early 2026.
