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Criminal Record Prohibition

Definition ∞ Criminal Record Prohibition refers to legal provisions that prevent individuals with specific criminal histories from engaging in certain financial or digital asset related activities. These prohibitions are typically implemented to uphold the integrity of financial systems and prevent illicit activities. They often apply to roles within regulated financial institutions or virtual asset service providers. Such restrictions aim to mitigate risks associated with money laundering or fraud.
Context ∞ This concept is a significant component of anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks globally. The expansion of these prohibitions to the digital asset sector highlights the increasing regulatory scrutiny on participant backgrounds. Its application seeks to prevent individuals with past offenses from exploiting new financial technologies for illegal purposes.

A central, pristine white spherical mechanism, partially open to reveal an inner orb, forms the secure core of a complex system. It is enveloped by an intricate array of sharp, multifaceted blue and dark blue geometric shards, radiating outwards. These elements collectively represent a robust decentralized network, where the core could symbolize a genesis block or a smart contract protected by numerous validator nodes. The composition highlights the inherent protocol security and immutability fundamental to distributed ledger technology DLT.

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South Korea Expands Crypto Travel Rule and Tightens VASP Governance Standards

VASPs must immediately recalibrate AML/CTF systems to capture all transfers exceeding the new $680 threshold and enforce stricter shareholder vetting.