Platform Licensing Regime

Definition ∞ A platform licensing regime is the regulatory system that mandates specific licenses or authorizations for digital asset platforms to operate legally within a jurisdiction. This regime defines the requirements for exchanges, custodians, and other service providers, including capital adequacy, cybersecurity standards, and consumer protection measures. Obtaining such licenses ensures a platform complies with local laws and oversight. It aims to professionalize the digital asset industry and safeguard users.
Context ∞ Platform licensing regimes are a key policy tool governments employ to regulate the digital asset sector and address concerns about market stability and illicit finance. Different countries are establishing their own licensing frameworks, leading to varying levels of regulatory stringency and market access. News frequently covers new licensing requirements, successful applications, and instances of platforms operating without proper authorization, impacting the global competitive landscape.