Licensed Exchanges

Definition ∞ Licensed exchanges are cryptocurrency trading platforms that operate under specific regulatory authorizations issued by governmental or financial authorities. These licenses mandate adherence to various legal requirements, including capital adequacy, anti-money laundering protocols, and consumer protection measures. Such exchanges provide a regulated environment for buying, selling, and trading digital assets. They offer a higher degree of oversight and legal recourse compared to unregulated platforms.
Context ∞ Crypto news frequently reports on the regulatory status and operational changes of licensed exchanges, highlighting their role in market legitimacy. The current discussion involves jurisdictions establishing clear licensing frameworks to bring digital asset trading within conventional financial oversight. A key debate centers on the scope and stringency of these regulations, and their impact on market access and innovation. Future developments will likely involve further global alignment of licensing standards to support international trading.