Regulatory Passport

Definition ∞ A regulatory passport refers to a mechanism that allows a financial entity, once authorized in one jurisdiction, to operate across other specified jurisdictions without needing to obtain separate, full authorizations in each. In the context of digital assets, this means a crypto-asset service provider (CASP) licensed in one EU member state could offer services across the entire European Economic Area. It streamlines market access and reduces the administrative burden for compliant businesses. This mechanism promotes cross-border operations.
Context ∞ Regulatory passports are a key feature of the European Union’s Markets in Crypto-Assets (MiCA) regulation, making them a frequent subject in crypto news related to market expansion and compliance. The discussion often highlights how this passporting regime will facilitate the growth of regulated crypto businesses across Europe. Challenges involve ensuring consistent interpretation and enforcement of MiCA across all member states. This framework aims to create a more integrated and competitive single market for digital assets within the EU.