Hong Kong Securities and Futures Commission: Blockchain technology can help anti-money laundering efforts

Bitcoin and Bitcoin technology are like two sides of the same coin. Banks and financial institutions are not very fond of Bitcoin as a cryptocurrency, but they are very interested in the blockchain technology behind Bitcoin. According to Hong Kong regulators, blockchain technology can help reduce money laundering problems.

Blockchain is a distributed ledger that can store transactions on the Bitcoin network. Similarly, blockchain is an immutable database in the traditional banking system that can record bank accounts and customer information. No information in the blockchain can be deleted or modified. On the other hand, blockchain technology can ensure that banks and financial institutions comply with anti-money laundering regulations and better promote KYC, because customer information is stored on the blockchain and regulators can conduct real-time inspections.

The Hong Kong Securities and Futures Commission (SFC) believes that digital currency technology can solve many problems for banks and financial institutions. Benedicte Nolens, head of the SFC’s risk assessment and strategy development department, said in a recent speech:

I think there are still many problems with KYC and anti-money laundering in the banking industry. Banks around the world spend more than $10 billion on these two aspects.

Currently, many banks and financial institutions in China have begun to use blockchain technology. At the beginning of the year, the Hong Kong Financial Technology Steering Group called for the use of blockchain technology in the local financial services sector, which would make financial services safer, faster and less expensive. Even China's central bank, the People's Bank of China, is very interested in blockchain and digital currency.
In addition to China, many international banking giants have joined the R3 banking alliance to jointly study blockchain technology to solve problems in the banking field. A report from Santander Bank pointed out that blockchain technology can help banks save millions of dollars in operating costs.

We can see from the high praise given to blockchain technology by the giants of banks and financial institutions that blockchain technology is the future of the financial world. However, there is still a challenge - how to get them to accept Bitcoin.