Most people, governments and companies around the world have been impacted greatly by the rapid advances in technology and globalization over the last couple of decades. These advances though have had some drawbacks, one of which is increased money laundering. In 2018 alone, more than $1.5 billion was laundered in the crypto space alone, but it is estimated that up to $2 trillion is globally laundered each year. To put this figure into perspective, that is roughly the equivalent of 2–5% of the world’s GDP.
In the past, money laundering involved couriers transporting large amounts of cash to corrupt banks or through offshore organizations that then laundered it. Thanks to modern technology and better surveillance, money laundering has become even more sophisticated to avoid detection and there is little faith within governments that will ever be able to turn the tide.
There is a solution, though, in L3COS’ regulated blockchain, an emerging and exciting technology that will have a transformational impact on the financial sector.
L3COS is the world leader in providing governments and institutions with an empowering, regulated blockchain. L3COS’s innovative solution consists of a three-level consensus blockchain that can be used by government, business, and society. In plain English, it allows participants at each level to communicate with each other without having to use intermediaries, using a system of permissions and hierarchies.
A country’s government lays down the fundamental rules for the relationships between and within each level of participants.
Why does the L3COS technology stand out? In a way, it’s the technological dream of every government. The main problem they have with the internet is that it’s insecure and susceptible to attack, and it is difficult for governments to regulate everything that happens on it.
With its three-level consensus, the L3COS regulated blockchain is designed to introduce transparency and eliminate fraud. Governments can rule on every single transaction and eliminate the risk of large-scale fraud — and hold offenders accountable for their crimes and misdemeanours.
Blockchain technology uses a decentralized network, where each participant or node is required to validate changes, making it incredibly secure. Since each participant has a record of the entire ledger, any unauthorized changes would be immediately detected by all participants.
This particular aspect of blockchain technology means that blockchain ledgers can be completely trusted, in theory. But as traditional blockchains are not regulated, they also leave room for malfeasance.
That’s where L3COS (Level 3 Consensus Operating System) comes in with its government-regulated blockchain. L3COS has developed a solid system that is immutable, traceable, transparent all of which makes fraud such as money laundering and tax evasion impossible.
With a perfect record of every action and transaction it provides the comfort and knowledge that the information contained on the platform is reliable, accurate and immutable. As senior government minister and chairperson of the Monetary Authority of Singapore Tharman Shanmugaratnam said at the World Economic Forum:
“We are exploring the potential that properly regulated digital currencies hold for cheaper and faster cross-border payments, financial inclusion, and rooting out illicit finance.”
An immutable ledger that records and checks the identity of those behind every single computerized transaction is a powerful weapon against money laundering. Since such a ledger is unalterable, it can be used as official evidence in any legal jurisdiction.
This simply means that individuals and businesses can be held accountable for any wrongdoing they commit. And again, it is only a regulated blockchain that can empower a government to bring about reversing the recent increases in money laundering.
Fortunately, L3COS is a regulated blockchain and can help to provide the authority of government and also the technological know how by keeping the records of every single transaction.
Once we get to this level of safety and trust with governments, it’ll be a lot easier to transition into national digital currencies that no bank would fear.
L3COS’ regulated blockchain technology is the perfect solution against money launderers that financial institutions and governments have been trying to deal with for decades. It offers transparency and traceability as well as a host of other benefits. This will make it easier to detect suspicious activities worldwide and, in the same way, finally limit the amount of money laundering. And governments wishing to move to a digital currency will be able to do so knowing that the banking system is more secure, reliable and implementable.