@florenceken
If a country introduces a crypto passporting framework, local exchanges and custodians could see significant revenue elasticity. Estimation requires linking addressable user bases with expected inflows from cross-border access. Using elasticity coefficients, one can simulate how incremental users boost transaction and custody fees. Scenarios can vary depending on licensing costs and regional adoption. The impact may resemble the EU’s MiCA framework, where compliance opened new revenue pools. Quantitative models can therefore forecast profitability trajectories, highlighting the sensitivity of local infrastructure providers to regulatory harmonization that reduces friction in cross-border crypto services.