Trading Platform Authorization

Definition ∞ Trading platform authorization refers to the formal approval granted by a regulatory authority for a digital asset exchange or trading venue to operate legally within a specific jurisdiction. This authorization typically involves meeting stringent requirements related to capital adequacy, consumer protection, anti-money laundering measures, and operational security. It signifies that the platform adheres to established legal and ethical standards. Obtaining authorization is a critical step for legitimate crypto businesses.
Context ∞ The process of trading platform authorization is a key focus for regulators seeking to bring order and safety to the digital asset market. The current situation often involves a complex and evolving landscape of licensing requirements across different countries. A critical future development will be the establishment of clearer, more harmonized international standards for authorization, facilitating legitimate global crypto trading while mitigating risks.