BIS Dey Propose AML Compliance Score for Crypto Off-Ramps
Di Bank for International Settlements (BIS) don publish BIS Bulletin wey talk about new anti-money laundering (AML) framework wey go assign AML compliance score to crypto holdings before dem convert am to fiat money. Dem go use public blockchain transaction history take check the origin of each crypto unit or wallet, and dem go flag “tainted” assets wey dey linked to illegal activity. According to the plan, stablecoins—wey dey responsible for 63% of all illegal crypto flows for 2024—go score based on wallet history, while Bitcoin UTXOs go carry embedded risk metrics. Crypto off-ramps, like exchanges and payment services, must check these risk scores for the point of conversion. Transactions wey pass the risk threshold fit get blocked or frozen, and those wey no comply fit face fines or penalty. BIS also talk say market participants get “duty of care”, encouraging users and service providers to avoid handling high-risk tokens. For full system, tainted stablecoins fit trade at discount, and scores fit remain attached to tokens when dem dey move across permissionless blockchains. The proposal want strengthen compliance monitoring and reduce illegal fund flows for crypto ecosystem.
Neutral
Di BIS proposal to assign AML compliance score to crypto off-ramps no go likely cause immediate market wahala. E go bring new compliance cost and fit reduce illegal flow—specially for stablecoins—but e go still boost legitimacy and institutional adoption over time. Past regulation like FATF Travel Rule get neutral to small bearish short-term effect, as exchanges adapt to KYC requirement without stopping market growth. For short term, traders fit face higher due diligence cost and possible delays to off-board fiat, dey put small downward pressure on high-risk tokens. For long term, better on-chain compliance fit attract institutional capital by reducing regulatory uncertainty, balance any initial bearish sentiment and support steady market growth.