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ARTICLE · 11 MARCH 2024

ESMA Consults On Essential MiCA Draft Guidelines: Reverse Solicitation And Financial Instruments

On 29 January 2024, the European Securities and Markets Authority (ESMA) published two consultation papers relating to draft guidelines proposed to be issued under Regulation 2023/1114 on markets in crypto-assets.

European UnionTechnology

On 29 January 2024, the European Securities and Markets Authority (ESMA) published two consultation papers relating to draft guidelines proposed to be issued under Regulation 2023/1114 on markets in crypto-assets (MiCA).

In summary the two papers provide the following:

Draft guidelines on reverse solicitation under MiCA

As background, MiCA restricts the provision of crypto-assets services in the EU by third-country firms, except when such crypto-asset services are initiated at the client's exclusive discretion (the Reverse Solicitation Exemption). Through the new draft guidelines, ESMA emphasises the narrow scope of this exemption to prevent circumvention of MiCA regulations.

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