June 8, 2016
Distributed ledger technology such as blockchain, which stores transaction records across a network, preventing duplication and reducing the risk of fraud, has potential to ensure banks comply with anti-money laundering and know your customer regulations, according to a senior official at Hong Kong’s market regulator.
Benedicte Nolens, the head of risk and strategy for the Hong Kong Securities and Futures Commission, said the technology could be applied to financial institutions in areas where there are clear problems to solve.
Earlier this year, Hong Kong’s Steering Group on Financial Technology highlighted how blockchain technology, which is behind virtual currency Bitcoin, could be adopted by the local financial services industry to reduce the number of suspicious transactions and lower transaction costs.