Definition ∞ Digital asset tracking refers to the monitoring of ownership, movement, and transaction history of cryptocurrencies and other digital tokens across blockchain networks. This process uses on-chain data and analytical tools to follow asset flows and identify patterns. It is essential for compliance, market analysis, and security investigations within the digital economy.
Context ∞ Regulatory bodies and financial institutions are increasingly focusing on digital asset tracking to combat illicit activities such as money laundering and fraud. Developments in tracking technology and data analytics frequently appear in news related to regulatory enforcement and the maturation of the digital asset market.
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