The Bank for International Settlements (BIS) has proposed a system for assessing the compliance of crypto-to-fiat off-ramps, focusing on transaction history to identify and potentially freeze assets linked to illicit activities. This proposed 'AML compliance score' would evaluate crypto holdings based on their association with illegal use, thereby influencing interactions with the banking system. The BIS highlights the limited effectiveness of traditional trusted intermediaries in enforcing compliance in the crypto domain and suggests that on-chain transaction history could significantly improve monitoring efforts. Stablecoins have reportedly become the preferred means for illicit transactions, accounting for about 63% of total illicit activity in 2024. The BIS strategy includes various thresholds to screen off-ramp requests, with responsibilities also extending to individual holders as compliance technology becomes more accessible. This approach highlights a 'duty of care' for both entities and users within the cryptocurrency ecosystem, potentially affecting the trading of tainted assets.

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