The
European Securities and Markets Authority (ESMA) published two consultation
papers today (Monday) seeking input from stakeholders on guidelines regarding reverse
solicitation and the classification of crypto-assets as financial instruments
under the Markets in Crypto Assets Regulation (MiCA).
ESMA Seeks Input on Regulations
under MiCA
The first
consultation paper covers proposed guidance on the conditions and supervision
of the reverse solicitation exemption under MiCA. Reverse solicitation refers
to situations where a client independently seeks out and initiates services
from a third-country crypto-asset service provider that is not authorized under
MiCA.
“This
exemption should be understood as very narrowly framed and must be regarded as
the exception. A firm cannot use it to bypass MiCA,” ESMA explained.
The second
consultation focuses on formulating clear criteria for determining when a
crypto-asset should be classified as a financial instrument under existing
European financial regulations. Creating consistency between MiCA and other
financial services directives like MiFID II
