A licensing mandate is a regulatory requirement compelling businesses to obtain official authorization from a government or supervisory body to operate legally within a specific industry. This authorization often involves meeting certain capital, operational, and compliance standards. It ensures market integrity and consumer protection.
Context
The digital asset industry is increasingly subject to licensing mandates as jurisdictions seek to regulate virtual asset service providers (VASPs) and other crypto businesses. These mandates aim to bring digital asset firms under supervisory oversight, similar to traditional financial institutions, to address concerns about market manipulation, consumer protection, and financial crime. Adherence is critical for legal operation and market access.
State-level enforcement validates the Digital Financial Assets Law, mandating immediate operational recalibration for VASP fee structures and AML/KYC controls.
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