Regulators and banks are skeptical about the idea of self-regulation of the cryptocurrency industry in the fight against money laundering and the financing of illegal activities.
The survey results, released on Tuesday by the UK’s Royal United Defense Research Institute (RUSI), showed that banks, governments and cryptocurrency CEOs have conflicting views on the self-regulation of the cryptocurrency industry. RUSI is the UK’s oldest think tank on defense and security issues.
According to the survey, 63% of banks and 56% of regulators view cryptoassets as risky, but this opinion is shared by only 9% of the surveyed representatives of the cryptocurrency industry.
“The crypto business seems to be very confident in their ability to withstand and detect risks, while regulators do not share this confidence,” said RUSI analyst Kayla Izenman.
556 respondents took part in the survey: representatives of regulators, intelligence agencies, banks and CEOs of cryptocurrency companies. According to the study, the use of cryptocurrencies in illegal activities is a concern for 70% of respondents.
Around 84% noted concerns about the use of cryptocurrencies for money laundering and the purchase of illegal substances on the darknet, 79% for terrorist financing, and 76% for human trafficking. At the same time, representatives of regulators assessed these risks as high.
However, participants in the cryptocurrency industry noted that cryptocurrency transactions are more transparent than traditional ones and more beneficial in terms of security. The survey found that CEOs of cryptocurrency companies are more aware of the potential risks of an emerging industry compared to the rest of the respondents.
At the same time, 78% of representatives of traditional financial institutions are more likely to turn to private organizations and blockchain associations for advice on cryptocurrency-related topics than to the government. All respondents agreed that cryptocurrency use is expected to increase over the next five years.
“All survey participants agree that the use of cryptocurrencies is growing, but we know there is no clear consensus on how to regulate them,” Eisenman said. “This could lead to an increase in the use of cryptocurrencies for illegal activities.”
Recall that, according to Reuters, by 2024 the European Union plans to fully regulate cryptocurrencies and digital assets.
