Licensing and Disclosure

Definition ∞ Licensing and disclosure are regulatory requirements for financial service providers to obtain official permission and provide transparent information. Licensing mandates that entities operating in regulated financial sectors, including those dealing with certain digital assets, acquire formal authorization from relevant authorities. Disclosure obligations compel these licensed entities to furnish comprehensive and clear information to consumers and regulators about their products, services, fees, and associated risks. These measures aim to ensure market integrity and consumer protection.
Context ∞ The framework of licensing and disclosure is increasingly applied to the digital asset industry as jurisdictions seek to formalize oversight. News often covers debates around which crypto activities necessitate specific licenses and the extent of information platforms must reveal to users. Regulatory bodies are working to establish consistent standards to mitigate risks and foster a more transparent digital asset environment.