International Payment Bank (BIS) has issued a proposed newsletter to combat money laundering in the Bitcoin (BTC) ecosystem and cryptocurrency. This creates a “compliance score” that qualifies each digital currency or Stablecoin balance based on your transaction history. The document, shared by 63 central banks and entities associated with financial authorities in various regions of the world, proposes to use the transparency of cryptocurrency networks to identify and quarantine funds related to illegal activities, blocking exchanges and changes to bank finance.
The document makes it clear that opinions belong to the author and not necessarily to the BIS, but the initiative states that traditional methods of money laundering, which rely on intermediaries such as banks, fail in the decentralized world of Bitcoin and cryptocurrency. Instead, the author presented the system Assign qualifications to digital assets using the public transaction registry. This score determines whether the fund is “clean” or “contaminated” by contact with a currency of questionable origin.
This measure will hold the “exit points” accountable (Off-Lamp), exchanges, stablecoins, and banks to verify this score before processing conversions to dollars, euros, or other currencies.
The system is usually evaluated by numerical evaluation on a scale of 0-100. It reflects the probability that the funds are related to illegal activities. A high score of nearly 100 is awarded to Bitcoin and cryptocurrency from a verified and understood portfolio known as the “whitelist.” Allow list. These wallets are typically associated with users who pass ID verification (KYC) and have no links to suspicious activity.
Meanwhile, funds with high scores can flow without restrictions, driving trade and conversion to Fíat without complications. On the contrary, a low score close to 0 refers to assets that have passed through the wallets included in the “blacklist.” Rejection listhackeos, darknet or mixer market (mixer) related to criminal activities.
The plans announced by the BIS include the establishment of thresholds for minimum AML scores by authorities in each jurisdiction to allow transactions. This approach can impose a “duty of care” on users. To avoid the problem, encourage transactions with high score wallets.
However, this proposal directs risk and complexity to the user. Users must adapt to the following changes:
- His self-ocascody wallet is no longer a shelter. This is because they are trying to maintain control over the key and convert the funds into fíat, but these are scrutinized based on the past.
- The exchange may reject your funds: If your Bitcoin or Stubcoin receives a low score because you interact with the direction of the “blacklist”, the exchange has the power to block sediment or retirement, affecting its liquidity.
- Increased Identification Requirements (KYC): Depending on the rigor, users may be forced to go through a more rigorous process, even moving funds into their wallets, if they want to maintain a “clean score.”
The most fundamental change is the imposition of “duty work” (Care obligation)user. This is especially due to the fact that it is no longer sufficient to receive payments. Also Everyone is forced to consider the origin of the funds you accept. Receiving Bitcoin and cryptocurrency from “polluted” sources can taint the entire balance of your wallet.
The entire plan means new costs and complexities for users to protect. They probably need to resort to third party services to analyze the origin of the asset before accepting it, and add cost and friction to each transaction.
For strict suggestions, it is clear There is significant interest in the regulations embedded in the logic of each transaction. For users, this means that sovereignty over assets involves a new complex layer of personal responsibility and constant surveillance.
