MiCA Passporting Across the EEA from Cyprus
One of MiCA’s central objectives is to replace the fragmented national crypto regimes that previously existed across the EU with a single rulebook that allows crypto-asset service providers to operate across borders on the strength of a single authorisation. This is often described as “passporting.”
How Passporting Works
A CASP authorised by CySEC in Cyprus can provide crypto-asset services in other EEA Member States either on a cross-border services basis or by establishing a branch, without needing to obtain a separate licence in each additional country. The firm notifies its home regulator, which in turn informs the host regulators.
Why Cyprus Is an Attractive Passporting Base
Cyprus combines EU membership, an English common-law-influenced legal system, a competitive corporate tax regime, and a regulator with established experience authorising and supervising cross-border financial services firms. For many crypto businesses, this makes it a practical base from which to build a genuinely pan-European offering.
Practical Steps to Passport
Once authorised in Cyprus, a CASP wishing to provide services elsewhere in the EEA must notify CySEC of its intention, specifying the Member States concerned and the services to be provided there. CySEC then transmits this information to the relevant host authorities within the timeframe set out in MiCA.
Points to Watch
While passporting removes the need for separate licensing, firms should still be alert to host-country conduct rules, local marketing restrictions, and any additional AML obligations that may apply when actively targeting clients in another Member State.
Enalian advises crypto-asset businesses, investment firms and payment institutions on MiCA authorisation, notification and ongoing compliance in Cyprus. If you are planning a CASP application or reviewing your regulatory status, our team can guide you through the process. Get in touch with our team to discuss your specific circumstances.
This article is provided for general informational purposes only and does not constitute legal, tax or regulatory advice. Regulatory requirements are subject to change; readers should seek specific advice on their circumstances before taking action.
