Most people, governments and companies around the world have been impacted enormously by the great and rapid advances in technology and globalization over the last couple of decades. These advances have led to many drawbacks, though, one of which is money laundering. In 2018 alone, more than $1.5 billion have been laundered in the crypto space. It is estimated that up to $2 trillion is laundered each year. To put this figure into perspective, it is roughly equivalent to 2–5% of the world’s GDP.
In the past, money laundering involved couriers transporting large amounts of money to corrupt banks or offshore organizations that then laundered it. Thanks to modern technology, money laundering has become so incredibly sophisticated that it’s difficult to find any tangible connection between the funds and their origin.
There is a solution, though, in L3COS’ regulated blockchain, an emerging and exciting technology that will enormously benefit 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 used by government, business, and society. In plain English, it means participants at each level can communicate with each other without intermediaries, using a system of permissions and hierarchies. It is the government that sets fundamental rules for the relationships between the different- and same-level participants. In turn, level 3 participants (the citizenry) regulate the government, just like in real life.
Why does this technology stand out? In a way, it’s the technological fantasy of every government. The main problem governments have with using 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.
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 change 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 and that makes fraud such as money laundering and tax evasion impossible.
And this is the result of impeccable recordkeeping and knowledge that the information contained within 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 IDs of actors 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 would be held accountable for any wrongdoing they commit. Again, a regulated blockchain is also needed to reverse those effects.
Fortunately, L3COS is a regulated blockchain that helps control and keeps records of every single transaction.
Then, every user can be held accountable for their actions and governments will be empowered to act in response. 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 for the money laundering that financial institutions and governments have been trying to deal with for decades. It offers transparency and traceability (as well as numerous other benefits). This will make it easier to detect suspicious activities worldwide and, in the same way, limit money laundering. And governments wishing to move to digital currency will be able to do so with total peace of mind.