Hong Kong Monetary Authority: Blockchain may increase money laundering risk

Regulation | November 18, 2016 By:

The Hong Kong Monetary Authority (HKMA) has issued an assessment of blockchain technology, including a cautionary note that it may increase the risk of money laundering.

In a study, the HKMA said even though bitcoin’s distributed ledger could save on cost and cut down on time, it also had the potential to provide criminals with a way of undertaking illegal activities.

Shu Pui Li, the central bank’s executive director for financial infrastructure, said as part of a presentation for the HKMA Fintech Day, “Blockchain offers good potential, but a lot of things need to be addressed. The most painful issue is legal. A lot of legal issues.”

The Hong Kong Monetary Authority is Hong Kong’s currency board and de facto central bank.