The Bank for International Settlements (BIS) has proposed a compliance score for crypto-to-fiat off-ramps aimed at anti-money laundering (AML) efforts. This system would use transaction history to assess the likelihood of a cryptoasset being linked to illicit activities. The resulting AML compliance scores would help prevent illegal funds from entering the banking system. BIS noted that current reliance on trusted intermediaries is limited, but public blockchain transaction histories can aid in compliance monitoring. Since 2022, stablecoins have become the preferred choice for criminals over Bitcoin, accounting for about 63% of illicit transactions as of 2024. Under the proposed system, crypto off-ramps would need to avoid accepting or cashing out tainted assets to maintain compliance. The BIS also anticipates that holders of these assets could face compliance requirements, with the potential for tainted stablecoins to trade at a discount. This initiative seeks to impose a duty of care on both market participants and individual users, promoting responsible behavior in decentralized transactions.

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