Digital Asset Passporting

Definition ∞ Digital asset passporting refers to a regulatory framework or mechanism that allows a digital asset service provider authorized in one jurisdiction to offer its services across other jurisdictions without requiring separate full authorization in each new location. This concept aims to streamline compliance and reduce operational barriers for businesses operating within a single market area. It facilitates market expansion for compliant digital asset entities.
Context ∞ The European Union’s Markets in Crypto-Assets (MiCA) regulation is a significant example driving the discussion around digital asset passporting. The primary debate involves balancing regulatory oversight with fostering innovation and market access. Future efforts will focus on harmonizing international standards to enable more seamless cross-border operations for digital asset firms globally.