Monetary firms and governments deeply sceptical of cryptocurrencies: survey

Edna B. Shearer

LONDON (Reuters) – Monetary firms and governments overwhelmingly see cryptocurrencies as risky, a main study found on Tuesday, with the prospective for bitcoin and other electronic tokens for use in dollars laundering and sanctions busting between the main concerns.

FILE Photograph: Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a Computer motherboard in this illustration picture, February 13, 2018. Picture is taken February 13, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

All around 60% of respondents from money firms, govt and the private sector alike to the survey by the Royal United Solutions Institute imagine-tank and the Affiliation of Anti-Dollars Laundering Specialists stated cryptocurrencies ended up a risk alternatively than an possibility. Illicit usage was the major issue.

The results, one particular of the most detailed efforts still to map out mainstream global sights in the direction of cryptocurrencies, lay bare the depth of scepticism to the rising tech.

They suggest an uphill battle for the crypto industry to accomplish broader acceptance, even as nations across the planet grapple with how to control cryptocurrencies. The European Union will introduce new principles for some cryptocurrencies by 2024, files confirmed final week.

The perception of legal use of cryptocurrencies is deep-rooted, the study found. Practically 90% of respondents from money firms mentioned they were apprehensive about crypto getting employed to launder money. About 80% were concerned about sanctioned actors applying digital cash to circumvent the formal economic method.

“All respondents settle for that cryptocurrencies are susceptible to criminals,” the survey’s authors mentioned.

The extent to which crypto is made use of for crime is unclear, with earlier investigate by big blockchain investigation business Chainalysis this 12 months placing the fee as lower as 1% of all transactions.

However, electronic currencies are preferred with cyber-criminals, as the July hack of key Twitter users to reap bitcoin demonstrates.

Cryptocurrencies have also been utilized for the funding of militant teams. The U.S. Justice Office mentioned very last month it experienced targeted initiatives by the armed service wing of Hamas, al Qaeda and Islamic Condition to raise funds by way of cryptocurrencies.

Only a fifth of respondents from financial and other personal corporations stated they seen digital coins as an opportunity, the research found. Among the prospective gains cited was the likelihood crypto could prolong access to financial products and services.

The survey was primarily based on around 550 responses from fiscal institutions, regulation enforcement and financial watchdogs, and lawful and insurance policies companies. It also tapped the cryptocurrency industry.

Reporting by Tom Wilson modifying by David Evans

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