top of page

Passporting of the MiCA license in the Estonian "Markets in Crypto-Assets Law" draft


passporting of the MiCA license


As we know, one of the features of Markets in Crypto-Assets (MiCA) is that it establishes uniform market rules for crypto-assets. In practice, this means, among other benefits, the possibility for businesses that are registered and licensed in one Member state to offer their services in another EU country under the same rules. 


Passporting is a feature of the MiCA law that allows businesses registered and licensed in one EU country to offer their services in another EU country under the same rules. In the context of MiCA and cryptoregulationin Estonia, passporting allows a Crypto Asset Service Provider (CASP) licensed in one EU Member State to operate in another EU Member State without requiring separate licenses in each Member State. However, CASPs must notify the competent authority if they intend to provide their services in more than one Member State.


If an EU-registered CASP wishes to operate in Estonia, it can do so by either registering a branch or notifying the Estonian Financial Supervision Authority (FI) about cross-border operations in Estonia. Before starting operations in Estonia through a branch, a Member State’s entity must inform the FI of the date when the branch will start operating in Estonia. A foreign entity must comply with the requirements established for its activities by Estonian legislation to operate in Estonia.


If an Estonian CASP wants to offer its services in a foreign country that is not an EU Member State, they need to obtain an Estonian activity license first. Then, the Estonian CASP shall apply for a permit from the Financial Supervision Authority to operate in a third country.


An Estonian CASP may establish a branch in a third country, provide cross-border services, offer crypto assets, and apply for admission to trading in accordance with the provisions of the legislation of that country, Estonian legislation, and taking into account the requirements established by the Financial Supervision Authority and, where applicable, the competent authority of the third country.




Commentaires


bottom of page