Licensed Exchange Operations

Definition ∞ Licensed exchange operations pertain to the activities of a cryptocurrency trading platform that has obtained formal authorization and is subject to regulatory oversight from a governmental body. This licensure typically requires adherence to specific compliance standards, including anti-money laundering protocols, customer protection measures, and capital requirements. Operating under a license provides a recognized legal framework for digital asset trading.
Context ∞ News frequently covers developments in licensed exchange operations, highlighting the increasing regulatory maturity of the digital asset market. Such licensure signals greater legitimacy and often attracts institutional investors seeking regulated avenues for crypto exposure. The stringent requirements for obtaining and maintaining these licenses often shape the competitive landscape and operational practices of trading platforms globally.