European Union: Closed Consultation on Guidelines for Reverse Solicitation and Classification of Crypto-Assets

On 29 April 2024, the European Securities and Markets Authority (ESMA) closed the consultation on guidelines under the Markets in Crypto Assets Regulation (MiCA). The consultation was aimed at seeking input on the conditions of application of the reverse solicitation exemption. The consultation aims to gather insights on guidelines under consideration by ESMA, aiming for greater consistency in interpreting and supervising situations where a third-country firm is perceived to solicit clients in the Union. Additionally, the guidelines aspire to promote uniform supervision and prevent abuse of Article 61 of MiCA, outlining practices to detect and prevent circumvention. These guidelines focus on solicitation methods, individuals soliciting, the client's exclusive initiative, and conditions for marketing similar crypto-assets, emphasising a comprehensive interpretation of solicitation means. To counter evasion, the guidelines advocate monitoring entities, collaborating with other authorities, and responding to client complaints or whistle-blowers. The feedback received will be considered in Q2 2024, with a final report expected to be published in Q4 2024.