- BIS proposes AML compliance scores for crypto wallets.
- Impacts how users convert crypto to fiat.
- No major industry figures have commented yet.
The Bank for International Settlements proposed AML compliance scores for non-custodial crypto wallets on August 13, 2025, potentially impacting how blockchains interact with financial systems globally.
This proposal could alter crypto transactions with centralized systems by enforcing compliance scores, although no immediate market changes or responses from key industry figures have emerged.
The Bank for International Settlements (BIS) has introduced a plan for AML compliance scores specifically for non-custodial crypto wallets. This initiative aims to influence interactions between public blockchains and centralized financial systems. A diagnostic ‘AML compliance score’ could be referenced – when cryptoassets (including stablecoins) are presented for conversion to fiat currency at the ‘off-ramps’ – notably, at the point of contact with the banking system.
The BIS’s recommendation involves tracking transaction histories and evaluating wallets using allow and deny lists. This proposal, released in an official bulletin, focuses on compliance during crypto to fiat conversions.
The launch of this proposal has not prompted any immediate market changes, nor have any influential figures in the crypto community addressed it publicly. The idea, if implemented, could restructure crypto-to-fiat transaction methodologies.
Should these changes take effect, financial systems might witness an altered landscape, with crypto exchanges having to meet new compliance thresholds. Failure to adhere could result in penalties.
The proposal resembles existing tracking practices by analytics firms, yet it holds potential for formal enforcement. BIS has presented no specific funding for this initiative and awaits further discussion and consideration in regulatory circles.
Historically, wallet tracking by private sectors helped mitigate illicit activities without integrating regulatory mandates directly. Introducing such compliance could affect asset liquidity if wallets face scoring penalties, potentially leading to reduced efficiency in crypto markets.
