AI Summary of Article 59 Authorisation
Persons are prohibited from providing crypto-asset services within the Union unless they are either a legal person authorised as a crypto-asset service provider under Article 63, or certain financial entities like credit institutions and investment firms permitted under Article 60. Authorised providers must have a registered office and effective management within the Union, and at least one director must reside in the Union. Non-legal entities can offer services only if their structure provides equivalent protections to legal persons.
Authorised crypto-asset service providers are allowed to operate throughout the Union via establishment rights or the freedom to provide services, without needing a physical presence in host Member States. Any provider that wishes to expand its service offerings must request an extension of authorisation from the relevant competent authorities in accordance with Article 63.
Article 59 Authorisation
1. A person shall not provide crypto-asset services, within the Union, unless that person is:
(a) a legal person or other undertaking that has been authorised as crypto-asset service provider in accordance with Article 63; or
(b) a credit institution, central securities depository, investment firm, market operator, electronic money institution, UCITS management company, or an alternative investment fund manager that is allowed to provide crypto-asset services pursuant to Article 60.
2. Crypto-asset service providers authorised in accordance with Article 63 shall have a registered office in a Member State where they carry out at least part of their crypto-asset services. They shall have their place of effective management in the Union and at least one of the directors shall be resident in the Union.
3. For the purposes of paragraph 1, point (a), other undertakings that are not legal persons shall only provide crypto-asset services if their legal form ensures a level of protection for third parties' interests equivalent to that afforded by legal persons and if they are subject to equivalent prudential supervision appropriate to their legal form.