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Stablecoin Licensing

Definition

Stablecoin Licensing refers to the regulatory authorization required for entities to issue and operate stablecoins within a specific jurisdiction. This legal framework aims to ensure the stability, solvency, and consumer protection aspects of digital assets pegged to fiat currencies or other stable assets. Licensing requirements often include capital reserves, audit standards, and anti-money laundering compliance. It provides a legal basis for stablecoin operations, enhancing trust and reducing systemic risks. This regulatory development is crucial for the mainstream adoption of stablecoins.