Definition:
Licensing requirements refer to the specific conditions and processes a business must follow to obtain a license for operating within a regulated industry.

Contextual Explanation:
In the financial sector, payment service providers must meet licensing requirements set by regulators such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) or the Monetary Authority of Singapore (MAS). These requirements typically include capital adequacy, compliance programs, and risk management measures.

Why It Matters:
Failure to meet licensing requirements can result in application rejections, penalties, or the inability to legally operate in a given jurisdiction.

Example:
A fintech company applying for an Electronic Money Institution (EMI) license in the UK must comply with the Financial Conduct Authority’s (FCA) regulatory guidelines.