Why indirect exposure matters in digital asset operations
This explainer clarifies why indirect exposure is now a board-level issue. It breaks down how sanctioned value can propagate through legitimate-looking venues and where compliance teams need evidence, not assumption.
Exploring the regulatory shift from strict liability on direct interactions towards a holistic "network proximity" standard for digital asset compliance programs.
Indirect exposure is a governance problem as much as a screening problem.
Hop count alone is not enough; transaction context and liquidity venue type matter.
Teams need narrative justification for risk decisions when direct contact is absent.
- Draft internal policy on acceptable indirect exposure thresholds.
- Support auditor responses with explainable path analysis.
- Train operations teams on escalation criteria for adjacency events.
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