Cardano gives token issuers power to freeze, seize and restrict assets
AI-summarised brief · reviewed before publication
The Cardano Foundation has activated CIP‑0113, a token standard that embeds compliance controls directly into regulated digital assets. The protocol allows issuers of stablecoins, funds, and bonds to set transfer rules that enforce identity verification, sanctions screening, and other regulatory checks on every transaction. It also grants issuers the authority to freeze, seize, or restrict holdings when required, without needing a network hard fork. The standard can be updated as regulations evolve, enabling issuers to maintain compliance while keeping token mobility intact for authorized parties.
💡 Why It Matters
- · By integrating regulatory safeguards into the token itself, CIP‑0113 gives regulated issuers a practical tool to meet KYC and AML obligations on a public blockchain, potentially accelerating institutional adoption of on‑chain assets.