🌐 BIS New Plan: Making ‘Dirty’ Crypto Harder to Cash Out

🚨 The Bank for International Settlements (BIS) has introduced a game-changing proposal that could reshape the future of crypto-to-fiat conversions. Under this plan, every crypto transaction will carry a compliance score, making it harder for “dirty” or suspicious crypto to be converted into real money.

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🔎 What Does This Mean?

1. Risk Scoring System 🧾 – Each crypto asset will get a score based on its transaction history. If linked to money laundering, scams, or illegal activities, it will be marked as “high-risk.”

2. Tougher Cash-Out Rules 💸 – High-risk coins will face restrictions when converting to fiat (USD, INR, EUR, etc.), potentially blocking criminals from cashing out.

3. Focus on Stablecoins 🪙 – BIS highlighted that stablecoins (like USDT, USDC) are increasingly being used in illegal activities. In fact, 63% of illicit crypto transactions in 2024 were linked to stablecoins.

4. Stricter Exchanges 🏦 – Crypto exchanges and off-ramps will be legally required to follow this system, failing which they could face fines and penalties.

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📈 Impact on the Crypto Market

Positive for Long-Term Investors ✅ – A cleaner crypto ecosystem could attract more institutional money, boosting credibility and trust.

Negative for Criminal Usage ❌ – Scammers, hackers, and money launderers will find it much harder to liquidate funds.

Short-Term Volatility ⚡ – New regulations often bring fear and uncertainty. Some tokens, especially stablecoins, may face temporary sell pressure.

Bullish for Bitcoin & Regulated Assets 🚀 – Assets with transparent usage and regulatory acceptance might see more inflows.

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🧠 Smart Takeaway

This BIS plan isn’t just about restrictions—it’s about paving the way for mainstream adoption of crypto. By cleaning up “dirty” money, the crypto market could finally gain the trust of governments, banks, and big investors.

👉 In short: Less crime = More trust = Higher adoption.