Definition ∞ On-site evaluation involves a direct, physical assessment or audit conducted at a specific location, typically an organization’s premises, to verify compliance, assess security posture, or review operational procedures. In the digital asset sector, this could entail inspecting data centers, hardware security modules, or operational controls for crypto custodians. This method provides firsthand verification of implemented safeguards and adherence to regulatory requirements. It is a vital component of due diligence and risk management.
Context ∞ The state of on-site evaluation for digital asset service providers is becoming increasingly important as regulators seek greater assurances regarding asset security and operational integrity. Discussions often concern the scope and frequency of these evaluations, particularly for firms handling significant volumes of crypto assets. A critical future development involves integrating remote auditing capabilities with targeted physical inspections, creating a more efficient and comprehensive oversight model for distributed and geographically diverse operations.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
