Provisional Licensing Regime

Definition ∞ A provisional licensing regime is a temporary or interim regulatory framework that permits digital asset businesses to operate under specific conditions while they progress toward obtaining full regulatory authorization. This regime provides a controlled environment for technological innovation and allows regulators to gain insight into new business models. It balances innovation with oversight.
Context ∞ Several jurisdictions implement provisional licensing regimes to support fintech innovation while managing the inherent risks in the rapidly evolving digital asset sector. News frequently reports on which firms receive these temporary licenses, offering an indication of regulatory sentiment and the potential for future market expansion within those specific regions.