Definition ∞ EU licensing pertains to the authorization granted by European Union member states for businesses to operate within specific regulated sectors. For digital asset firms, this involves adhering to a common set of regulations, such as MiCA, to gain permission to offer services across the EU. It establishes a legal framework for digital asset service providers, ensuring compliance and consumer protection.
Context ∞ EU licensing, particularly under the MiCA regulation, is a pivotal development for digital asset businesses seeking to operate across European markets. This regulatory clarity aims to harmonize rules and provide legal certainty, fostering innovation while mitigating risks. Companies are currently adapting their operations to meet these new compliance requirements to secure broad market entry.
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