Definition ∞ Asset traceability refers to the ability to track the origin, movement, and ownership history of a digital asset. This capability is often facilitated by distributed ledger technology, which records all transactions immutably. It allows for verification of an asset’s lifecycle and authenticity.
Context ∞ Asset traceability is a focal point in discussions concerning regulatory compliance, anti-money laundering (AML) efforts, and the prevention of illicit activities within the digital asset space. Its implementation is crucial for building confidence in the integrity of digital asset markets.
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