Blockchain is a technology of opportunity, and with that opportunity comes the potential for great good, but also great harm. Money laundering, sanctions evasion and ransomware, terrorist financing, market manipulation, and sophisticated white-collar schemes are already benefitting from the expanding blockchain ecosystem used across the globe. What approaches exist for collaborative solutions to this growing threat, while maintaining the best of blockchain potential?
CIGI Senior Fellow S. Yash Kalash provides recommendations for a multilateral governance regime capable of safeguarding digital asset integrity while enabling responsible innovation in an increasingly fragmented geopolitical landscape. Through exploring how a multi-layered enforcement architecture could be integrated by innovations such as distributed ledger technology, decentralized autonomous organizations and blockchain analytics firms, and through examining the emerging roles of international organizations to address the challenges and opportunities of blockchain-based financial ecosystems, this paper provides key insights for how the international community can build a coherent, effective and innovation-preserving governance regime for crypto-enabled financial crime enforcement.
