‘Greenlist’ is the flip side of blacklisting. Some custodians or exchanges only allow withdrawals to addresses deemed low-risk or AML/KYC-cleared. While this might minimize regulatory scrutiny, it undermines the fungibility of Bitcoin by imposing privileged sets of addresses. Opponents argue it creates a two-tier system, dividing the network into approved and unapproved coins.

In theory, greenlisting could expand if regulators push for stricter ‘travel rule’ compliance and chain analysis. But many in the Bitcoin community see this as a slippery slope toward censorship of valid transactions. Ultimately, the debate centers on balancing legal obligations with Bitcoin’s core principle that any address should be free to transact.