![]() (Otherwise, an address might still be able to engage in undesired activity by sending payments through the financial institution.)Īn individual address can freeze its trust line to a financial institution. The financial institution should also freeze the counterparty in any other systems the financial institution uses that are connected to the XRP Ledger. ![]() XRP cannot be frozen.Ī financial institution can freeze the trust line linking it to a counterparty if that counterparty shows suspicious activity or violates the financial institution's terms of use. The counterparty's offers to sell the tokens in the frozen trust line are considered unfunded.The counterparty can still receive payments from others on the frozen trust line.The counterparty can only send the frozen currencies directly to the issuer. The counterparty of that trust line can no longer decrease its balance on the frozen trust line, except in direct payments to the issuer.Payments can still occur directly between the two parties of the frozen trust line.When an issuer enables the Individual Freeze setting, the following rules apply to the tokens in that trust line: The Individual Freeze feature is a setting on a trust line. Either the token issuer or the currency holder can freeze a trust line however, the effect is minimal when a currency holder enacts a freeze. No Freeze - Permanently give up the ability to freeze individual counterparties, as well as the ability to end a global freeze.Īll freeze settings can be enacted regardless of whether the balance(s) to be frozen are positive or negative.Global Freeze - Freeze all counterparties.Individual Freeze - Freeze one counterparty.There are three settings related to freezes: For more details, see Common Misunderstandings about Freezes. However, custodial exchanges can always freeze the funds they custody at their own discretion. ![]() Tip: No one can freeze XRP in the XRP Ledger. In certain cases, to meet regulatory requirements, or while investigating suspicious activity, an exchange or gateway may want to freeze token balances. This does not apply to XRP, which is the native asset of the XRP Ledger, not an issued token. Issuers can freeze the tokens they issue in the XRP Ledger. ![]()
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