Regulatory Alerts2025-02-26
Guidelines on situations where a third-country entity is deemed to be soliciting clients established or located in the EU and supervisory practices to detect and prevent circumvention of the reverse solicitation exemption under the Markets in Crypto-Assets Regulation (MiCA)
The European Securities and Markets Authority (ESMA) issues these guidelines to establish consistent supervisory practices for detecting when third-country crypto-asset service providers are soliciting EU clients, thereby circumventing the reverse solicitation exemption under Article 61 of the MiCA Regulation. The document defines broad criteria for client solicitation, clarifies that only strictly client-initiated contact qualifies for the exemption, and provides specific examples of crypto-assets that are not considered of the same type to prevent regulatory arbitrage. It further mandates that national competent authorities implement monitoring practices, such as tracking digital marketing activities and cooperating with other bodies, to ensure compliance and prevent unauthorized market access.