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Crypto Exchanges Licensing

Definition

Crypto exchanges licensing involves official authorization granted to cryptocurrency trading platforms by regulatory authorities. This regulatory process requires digital asset exchanges to meet specific operational, financial, and compliance standards to operate legally within a jurisdiction. Licenses typically address aspects such as anti-money laundering (AML) protocols, know-your-customer (KYC) procedures, cybersecurity measures, and capital requirements. Such authorization aims to protect consumers and maintain financial system integrity.