According to TechFlow, the Basel Committee on Banking Supervision (BCBS) pointed out in its latest report that banks face multiple risks such as money laundering, terrorist financing, operations and security when trading on unlicensed blockchains.
The report highlights that blockchain’s reliance on unknown third parties makes it difficult for banks to conduct due diligence and oversight, requiring new risk management strategies and safeguards.
Banks also face political uncertainty, as new legislation could change validator behavior, making blockchain operations unstable and increasing the risk of 51% attacks.
Some technologies are being developed to address some of the risks, especially privacy issues, and zero-knowledge proofs are seen as a potential solution. The BCBS approved a disclosure framework on banks' exposure to crypto assets last month, which must be implemented by early 2026.
