Passporting

Under MiCA Article 59, licensed Crypto-Asset Service Providers can passport their authorization across all EU and EEA member states, provided they notify their home regulator of their intention to provide services in other jurisdictions, enabling cross-border operations throughout the single market without separate national registrations.

Once authorized in their home member state, CASPs may offer services including exchange, custody, portfolio management, investment advice, and platform operation throughout the European Union based on single authorization. The home regulator remains responsible for ongoing supervision, while host member states may impose limited conduct of business requirements addressing local consumer protection concerns.

This framework mirrors MiFID II passporting for investment services and facilitates cross-border compliance uniformity for digital assets, eliminating the previous fragmentation where CASPs required separate licenses in each member state. Passporting benefits include reduced regulatory compliance costs, simplified market entry across 27 jurisdictions, harmonized conduct standards under MiCA, and enhanced consumer confidence through EU-wide minimum protections. However, passporting requires CASPs to understand and comply with host country requirements including marketing restrictions, language requirements for client communications, and cooperation with local authorities on consumer complaints and enforcement matters.