Track Record Requirement

Definition ∞ A track record requirement specifies a minimum period of proven operational history or performance that an entity or asset must demonstrate to qualify for certain licenses, listings, or investment opportunities. This criterion serves as a measure of reliability and experience, aiming to reduce risk for investors and regulators. It provides evidence of consistent operation and compliance.
Context ∞ In the evolving digital asset regulatory landscape, a track record requirement is increasingly being considered by financial authorities for virtual asset service providers and digital asset products. News reports might highlight proposals for crypto exchanges or token issuers to demonstrate several years of secure operation before receiving full regulatory approval. This requirement aims to separate established, compliant entities from newer, potentially riskier ventures.