Revolutionary: BIS Unveils BIS AML Compliance Score System for Crypto Tokens

Key Points

1. The BIS suggests assigning anti-money laundering (AML) compliance scores to crypto tokens based on their transaction history to combat illicit finance.

2. The system aims to reduce the flow of illicit funds and provide a standardized approach to assessing token risk without requiring user data collection.

3. Challenges include accurately determining scores without false positives and addressing the impact on privacy-focused tokens and DeFi protocols.

4. The proposal emphasizes maintaining the pseudo-anonymous nature of cryptocurrencies while improving regulatory oversight.

5. Implementation would require collaboration among exchanges, regulators, and blockchain analytics firms, shifting from 'know your customer' (KYC) to 'know your token'.