Issuer Eligibility

Definition ∞ Issuer eligibility defines the requirements a project or entity must satisfy to release a digital asset. These criteria typically involve legal, technical, and financial standards set by regulatory bodies, exchanges, or decentralized autonomous organizations. For instance, an issuer might need to demonstrate a viable business model, comply with anti-money laundering regulations, or adhere to specific smart contract security protocols. Meeting these standards is essential for gaining market acceptance and regulatory approval.
Context ∞ Discussions about issuer eligibility frequently appear in news concerning new token launches, initial public offerings, or regulatory updates affecting the digital asset market. Stricter eligibility requirements are often proposed as a means to protect investors and enhance market integrity, especially after incidents involving fraudulent or unstable projects. The evolution of these standards reflects the ongoing maturation of the cryptocurrency ecosystem.