Digital Licensing

Definition ∞ Digital licensing refers to the regulatory authorization required for entities operating within the digital asset sector. This involves obtaining official permits from governmental or financial authorities to conduct activities such as exchange operations, custody services, or token issuance. Licensing aims to ensure compliance with anti-money laundering, consumer protection, and financial stability regulations. It establishes a framework for legal operation within specific jurisdictions.
Context ∞ The landscape of digital licensing is continuously evolving, with various jurisdictions implementing distinct regulatory requirements for crypto businesses. News concerning new licensing frameworks or approvals impacts operational strategies and market access for digital asset companies. This regulatory development is a critical factor for industry growth and legitimacy.