EU Crypto Rulebook Faces Early Test as National Regulators Challenge Passporting

The European Union's landmark Markets in Crypto-Assets (MiCA) regulation, designed to create a unified crypto market, is facing its first major challenge. National regulators, including those in France, Italy, and Austria, are expressing concerns about the "passporting" provision, which allows crypto firms licensed in one member state to operate across the entire bloc. This has led to fears of regulatory arbitrage and inconsistent implementation of the new rules.