In its latest report, the Basel Committee on Banking Supervision (BCBS) states that banks face multiple risks when transacting on permissionless blockchains, including challenges in money laundering, terrorist financing, operations and security, governance, legal, settlement finality, and compliance. BCBS, part of the Bank for International Settlements (BIS), the world's leading standard-setter for banking prudential regulation, notes that certain risks stem from blockchain's reliance on unknown third parties, which makes it difficult for banks to conduct due diligence and oversight. In addition, banks also face political uncertainty. New legislation could change validator behavior, making blockchain itself operationally unstable.