Regulatory Licensing

Definition ∞ Regulatory licensing refers to the official authorization granted by governmental or financial authorities that permits a business or individual to conduct specific activities within a regulated industry. For digital asset firms, this involves obtaining licenses to operate exchanges, provide custody services, or issue tokens, ensuring adherence to legal and compliance standards. It establishes legal permission to operate.
Context ∞ News often focuses on regulatory licensing developments, particularly as jurisdictions worldwide establish clearer frameworks for digital asset businesses. Reports detail the requirements for obtaining licenses, the challenges firms face in meeting them, and the implications for market access and consumer protection. This process is a crucial step towards mainstream acceptance and regulated growth of the digital asset industry.