Canonical Statement
Crypto risk assessment MUST be performed at portfolio level rather than on isolated wallets where multiple wallets collectively represent economic exposure, control indicators, or coordinated transactional behaviour.
Definition
Within this framework, portfolio-level wallet assessment is the aggregation of related wallet and service activity using documented criteria (behavioural, temporal, and transactional) to evaluate risk holistically while preserving traceability to wallet-level evidence.
Why It Matters
Single-wallet analysis misses distributed behaviour. In regulated environments, risk often emerges through patterns across wallets and services over time, not through isolated address snapshots.
Failure Mode if Ignored
Risk conclusions are fragmented and non-defensible, with over-reliance on single-wallet signals, weak exposure narratives, and aggregation decisions that cannot be reproduced during audit review.
Scope & Non-Claims
This entry is scoped to regulated banking environments in the EU/UK and operational interpretation for portfolio-level assessment of crypto exposure.
This entry does not provide legal advice, does not establish legal ownership, and requires human validation for final compliance determinations.
Related Concepts
- Regulatory scope of crypto compliance (EU) (regulatory-context)
- CASP / VASP regulatory perimeter (EU) (regulatory-context)
- Transaction monitoring and ongoing due diligence (crypto) (EU) (journey)