The Bank for International Settlements (BIS), which is skeptical of Bitcoin (BTC) and cryptocurrencies, has published a new article on cryptocurrencies.
According to DLNews, the BIS is proposing an AML compliance scoring system for cryptocurrencies.
The BIS stated that the scoring system aims to enhance anti-money laundering efforts and identify cryptocurrencies linked to illicit activities. The system will target cryptocurrencies linked to illicit activities.
Accordingly, BIS researchers proposed scoring investors’ cryptocurrencies based on their transfer history.
At this point, BIS researchers suggested assigning anti-money laundering compliance scores to cryptocurrencies based on their transaction history.
Accordingly, it has been suggested that cryptocurrencies that pass through suspected criminal wallets or protocols frequently used to launder stolen funds may receive a lower score.
The BIS also proposed that exchanges in each country would block the conversion of cryptocurrencies into fiat currency if they fall below a certain threshold. This would allow each country to set a threshold score that would determine whether users can convert their cryptocurrencies into fiat currency.
BIS listed the benefits of this system as follows:
” Enhanced Security: Reducing the flow of illicit funds through the crypto ecosystem. Increased Trust: Increasing trust in institutional investors and traditional finance.”
The BIS recently reiterated its skeptical approach to cryptocurrencies, saying they are risky and warning that they could undermine financial stability and regulators’ attempts to oversee financial markets.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/the-bank-for-international-settlements-bis-has-presented-a-new-proposal-regarding-bitcoin-and-cryptocurrencies-here-are-the-details/