BIS Proposes Crypto AML Compliance Scoring and Fiat Limits
BIS has proposed an AML compliance scoring system for crypto tokens, introducing risk-based AML compliance scores derived from on-chain transaction histories. Under the framework, exchanges would block token-to-fiat conversions if a token’s score falls below national thresholds. Assets with frequent transfers through suspicious wallets would receive lower scores, while low-risk tokens could gain wider acceptance among institutional investors. The proposal aims to strengthen AML compliance, enhance digital asset security and foster responsible DeFi innovation. Key challenges include ensuring scoring accuracy, avoiding false positives and securing cross-border regulatory consensus. Traders should monitor implementation timelines and threshold settings by jurisdictions, as this plan may reshape exchange compliance practices and impact token liquidity.
Neutral
The announcement of BIS’s AML compliance scoring system is likely neutral for the crypto market. In the short term, traders may face compliance adjustments and potential liquidity constraints for lower-scoring tokens, but the policy does not directly drive prices. Over the long term, the framework could bolster institutional confidence and market security by weeding out high-risk assets, which may support token valuations. Historical precedents show that regulatory clarity tends to stabilize markets, but uneven implementation and scoring disputes could introduce temporary volatility. Overall, the net impact is balanced between compliance costs and improved market integrity.