Regulatory Authorization

Definition ∞ Regulatory authorization refers to the formal permission granted by a governmental or financial oversight body for an entity to conduct specific activities. This often involves a licensing process where the applicant demonstrates compliance with relevant laws, capital requirements, and operational standards. Obtaining authorization is essential for operating legally within regulated industries, including financial services and digital asset markets. It signifies official approval and oversight.
Context ∞ For businesses operating in the digital asset space, obtaining regulatory authorization is a crucial step for legitimacy and broader market acceptance. News frequently reports on companies seeking or receiving licenses to operate as digital asset exchanges, custodians, or payment service providers. The pursuit of regulatory authorization reflects the growing maturity of the crypto industry and its increasing integration into the traditional financial market structure.