Electronic Money License

Definition ∞ An Electronic Money License is a regulatory authorization granted to institutions that issue electronic money or provide payment services using electronic funds. This license permits firms to operate within specific jurisdictions, subject to oversight from financial authorities. It ensures compliance with anti-money laundering regulations, consumer protection standards, and capital requirements. Obtaining such a license is a prerequisite for many digital payment providers and stablecoin issuers.
Context ∞ The acquisition of an Electronic Money License is a frequent topic in crypto news, particularly for stablecoin projects and digital asset exchanges seeking legitimacy and broader market access in the European Union. Regulatory bodies are currently refining the scope and requirements for these licenses to account for the unique characteristics of blockchain-based electronic money. The ongoing regulatory landscape seeks to balance innovation with financial stability and consumer safety.