According to public records, Bank of America has cited cryptocurrency as a material risk to its business and that the technology could hamper the second-largest U.S. bank’s ability to comply with anti-money-laundering regulations, pose a competitive threat and increase cost. This was according to the bank’s annual filing with the Securities and Exchange Commission.
Bank of America specifically mentioned “Cryptocurrency” in the section on risk factors.
The first reference is in the discussion of AML, know-your-customer, sanctions and foreign corruption laws in the U.S.
“Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds,” the filing says, explaining further:
“Our ability to comply with these laws is dependent on our ability to improve detection and reporting capabilities and reduce variation in control processes and oversight accountability.”
More interesting is that the bank’s acknowledgment that cryptocurrency poses competitive risks to the bank.
Full Story: – Bank of America Now Considers Crypto a Business Risk
Could the fear of competition from Bitcoin and other cryptocurrencies be the driving force behind recent action from banks? These actions include banning customers from purchasing Bitcoin with credit cards and banks canceling banking facilities for crypto companies.
There seem to be two overriding fears from banks and governments.
- The fear from governments of losing control of the financial system
- The fear of competition from the banks
This brings us back to our previous question.
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