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Shareholder Vetting

Definition ∞ Shareholder Vetting refers to the process of screening and evaluating individuals or entities holding ownership stakes in a company or project. This process typically involves background checks, financial reviews, and compliance assessments. Its purpose is to ensure that shareholders meet regulatory requirements, prevent illicit influence, and maintain corporate governance standards. This helps verify the legitimacy of ownership.
Context ∞ In the digital asset sector, shareholder vetting is gaining importance for projects and companies seeking to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. It helps identify beneficial owners and mitigate risks associated with market manipulation or criminal involvement. This practice is crucial for establishing trust and regulatory adherence.

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.