Deemed-To-Be-Licensed

Definition ∞ “Deemed-To-Be-Licensed” refers to a temporary regulatory status granted to certain entities, typically in nascent or evolving industries like digital assets. This status allows them to continue operations while their full license applications are processed. It permits businesses to operate under specific conditions, avoiding immediate disruption due to new regulatory frameworks. This serves as an interim measure to provide continuity and allow time for compliance adjustments. The status implies a conditional authorization based on an ongoing application.
Context ∞ This regulatory approach is common in jurisdictions introducing new licensing regimes for digital asset service providers, aiming to manage the transition for existing market participants. A primary discussion centers on the duration and specific obligations associated with this temporary status, ensuring market stability without compromising regulatory oversight. Authorities evaluate these entities for their adherence to compliance standards, often leading to full licensure or cessation of operations.