License Non-Transferability Blocks Innovation

This provision prohibits license transfers without Agency approval and restricts licenses to corporate entities only, creating significant barriers to digital innovation. The non-transferability requirement prevents normal business sales, mergers, or investor exits, making authentication service businesses illiquid assets that discourage venture capital investment and entrepreneurial risk-taking. The corporate-only restriction excludes individual developers and small teams who drive early-stage innovation, forcing premature incorporation with added legal costs. Combined with minimum capital requirements and extensive compliance criteria, these restrictions create a permission-based regulatory environment that favors established players over innovative startups—going beyond standard OECD practice for authentication services.