Banks, governments, and crypto industry divided on cryptocurrency risk, survey reveals

Criminal activity remains top of mind for both governments and crypto industry professionals, with 70% of total respondents highlighting this as a concern. When asked to select any areas of concern, respondents overall indicated they are worried about the use of cryptocurrency for money-laundering (84%), on the dark web (84%), for procurement of illicit goods (83%) by sanctioned actors (82%), by terrorist organisations (79%), to fund human trafficking (76%), and in fraudulent initial coin offering (75%).

The survey finds respondents split over whether they consider cryptocurrency a risk or an opportunity – with significant gaps between government and financial industry perceptions and those directly involved in the crypto industry. The cryptocurrency industry largely believes that cryptocurrency transactions offer more transparency than traditional financial transactions, and that transactions are compatible with sanctions screening and compliance, while financial institutions and government disagreed.

While cryptocurrency professionals are aware of the risks in their industry, other actors such as the media, politicians, and the public are less aware of the risks. Overall, there is a far higher likelihood (78%) that institutions will seek guidance from non-governmental organisations such as FATF, trade bodies, and blockchain associations, than from governments. Respondents of the survey are also of the view that governments are more likely to defer to international bodies (45%) over their own regulatory systems (35%).

The survey, commissioned by RUSI and ACAMS in partnership with YouGov, is based on 566 unique responses from across the global financial and cryptocurrency industries, including cryptocurrency exchanges, financial regulators, and financial intelligence units.