BIS Bulletin Aug 25 proposes a new AML model for cryptoassets, including stablecoins, by assigning each unit a compliance score based on its transaction history to track illicit activity

Recognizing the limitations of traditional AML methods in permissionless, decentralized networks, the BIS suggests leveraging blockchain transparency to gauge the risk each asset poses. These risk scores—ranging from “clean” to “tainted”—would be used at crypto-to-fiat conversion points (“off-ramps”) to block suspicious funds, thus fostering a duty-of-care culture among exchanges and issuers…