Canonical Statement
Self-hosted wallet interactions MUST be handled with explicit risk-based controls and evidence requirements that distinguish ownership or control evidence from on-chain activity observations.
Definition
Within this framework, self-hosted wallet handling is a documented control process for determining applicability, evidence depth, and residual risk for transfers involving non-custodial addresses, with ownership/control evidence evaluated separately from transactional visibility.
Why It Matters
Self-hosted wallet flows increase evidence complexity. Without explicit controls, institutions can over-infer ownership from activity traces or under-document risk rationale in high-impact decisions.
Failure Mode if Ignored
Handling becomes ad hoc, ownership/control assumptions are made without acceptable evidence, and evidence gaps are not tracked with residual risk, weakening audit and supervisory defensibility.
Scope & Non-Claims
This entry is scoped to regulated banking environments in the EU/UK and operational interpretation for self-hosted wallet control and evidence handling in EU contexts.
This entry does not provide legal advice, does not establish legal ownership in itself, and requires human validation for final compliance determinations.
Related Concepts
- Travel Rule applicability and counterparty information (EU) (regulatory-context)
- Wallets and portfolio-level assessment (EU) (model)
- Source of funds vs source of wealth (crypto) (EU) (definition)