Overview
Licensing is the regulatory approval required for exchanges and custodians to operate legally. It establishes minimum standards and oversight. Licenses vary by jurisdiction and activity.
How It Works
Firms apply to regulators, meet capital and compliance requirements, and receive a license to operate. Licensed platforms face ongoing supervision. Licensing builds user trust and market access.
Why It Matters
Licensing determines where platforms can operate and how they are supervised. It is a barrier to entry and a trust signal. It shapes the competitive landscape.
Related Concepts
Licensing relates to Regulation, Exchanges, and Institutional Custody. It is the Approval process for Platforms.