Exchange Licenses

Definition ∞ Exchange licenses are official permissions granted to platforms that facilitate the trading of assets. These regulatory approvals authorize cryptocurrency exchanges to operate legally within specific jurisdictions, allowing them to offer services such as buying, selling, and storing digital assets. Obtaining and maintaining such licenses typically necessitates adherence to strict anti-money laundering (AML) and know-your-customer (KYC) regulations, along with capital requirements and operational security standards. They are crucial for ensuring consumer protection and market integrity.
Context ∞ The global regulatory landscape for cryptocurrency exchange licenses is constantly evolving, with many nations still establishing comprehensive frameworks. News frequently covers major exchanges seeking or losing licenses in various regions, impacting their operational scope and market access. This ongoing regulatory scrutiny aims to mitigate risks associated with illicit finance and investor vulnerability, shaping the future of digital asset trading platforms.