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.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
The post New Proposal From BIS Could Change How Crypto Conversions Work appeared first on Coindoo.
Also read: U.S Treasury Secretary takes U-turn on Bitcoin purchases – Meaning?
