Cross Border Service Passporting

Definition ∞ Cross border service passporting is a regulatory mechanism allowing financial firms authorized in one jurisdiction to offer services in other participating jurisdictions without needing separate authorizations. This framework simplifies market access and promotes financial integration across regions. It relies on mutual recognition of regulatory standards and supervisory oversight. Such arrangements reduce operational burdens for firms expanding internationally.
Context ∞ The concept of cross border service passporting is gaining relevance in the digital asset sector as regulators consider global frameworks for cryptocurrency businesses. Achieving such passporting for digital asset services would significantly streamline international operations for exchanges, custodians, and DeFi platforms. Discussions currently focus on establishing common regulatory principles to facilitate this type of international market access.