A Mandatory Licensing Regime requires all entities operating certain types of businesses or providing specific services to obtain a license from a regulatory authority. In the digital asset sector, this regime mandates that crypto-asset service providers secure official approval before offering services like exchanges, custody, or transfers. Its purpose is to ensure compliance with legal and financial standards.
Context
Mandatory Licensing Regimes are becoming a standard approach for jurisdictions aiming to regulate the digital asset industry and mitigate risks. A critical discussion involves the scope of activities covered by these regimes and the burden they place on smaller or decentralized entities. Future developments will likely see increased international alignment on licensing standards to create a more consistent global regulatory landscape for crypto services.
The HKMA's new Ordinance mandates licensed issuers maintain full reserves and segregated client assets, fundamentally de-risking the APAC stablecoin market.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
