The Bank for International Settlements (BIS), a long-time critic of Bitcoin and other digital assets, has unveiled a proposal aimed at tightening anti-money laundering (AML) controls in the crypto sector.
In a recent research paper, BIS economists outlined a framework that would assign each cryptocurrency a compliance score based on its transaction history.
The idea is to flag assets that have passed through wallets or protocols suspected of laundering stolen or illicit funds, lowering their score and making them subject to stricter controls.
Under the proposal, national regulators could set minimum threshold scores for converting crypto into fiat currency. If an asset’s score falls below that threshold, exchanges in that jurisdiction would be barred from processing the conversion.
BIS believes this approach could deter the flow of illicit funds while boosting trust among institutional players and the broader financial sector.
The institution maintains its cautious stance toward crypto, warning that digital assets remain volatile and could pose threats to financial stability.
It has repeatedly argued that robust oversight is essential to prevent crypto markets from undermining the integrity of the global financial system.
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Source: https://coindoo.com/new-proposal-from-bis-could-change-how-crypto-conversions-work/