Definition ∞ Financial transparency describes the state where financial information is readily accessible and understandable to relevant parties. In digital asset markets, this often pertains to the open nature of blockchain ledgers, allowing for the verification of transactions and asset holdings. It supports accountability and trust within the ecosystem.
Context ∞ The discourse surrounding financial transparency in crypto often contrasts the inherent openness of public blockchains with the need for privacy and regulatory compliance. News reports frequently discuss the role of blockchain explorers in providing visibility into transaction flows and asset movements. Current debates focus on how to achieve a balance between public ledger accessibility and the protection of sensitive financial data, particularly in light of evolving regulatory expectations.
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