For years, the cryptocurrency community argues that blockchains allow other ways to approach anti-money laundering (AML) and compliance. Companies like Chainalysis and TRM Labs have been providing portfolio screening solutions for some time. Now, these approaches are approved by the bank for international colonies (bis) with its proposal for the classification of blockchain portfolios without authorization for risks. Key motivation is to reduce the potential of illicit funds from the cryptographic ecosystem in the traditional financial system. The document also makes some controversial suggestions.
BIS recognizes that “the international standards existing for the compliance of LMAs for cryptocurrencies are trying to apply the intermediate principles for the compliance of LMAs in the cryptographic world. However, there are clear limits to such an approach. ” That said, he concludes that ramps out of ramps are pragmatic points for the deployment of an LMA rating system.
The portfolio addresses would be noted according to the sources of incoming funds. If the funds mainly come from portfolios on an authorization list, it would reach a higher score of 100. If all the funds could be traced at an address on a list of refusals, the score would be closer to zero. Many transactions should be somewhere between the two.
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