On February 26, 2025, the European Securities and Markets Authority (ESMA) published new guidelines on reverse solicitation under Article 61 of MiCA. This update affects EU residents wishing to register on foreign platforms, establishing a stricter interpretation of existing regulations.
The main focus of these guidelines is to regulate crypto-asset service providers (CASPs) that do not hold a license in the EU. ESMA seeks to prevent circumvention of MiCA and ensure consistent supervision among EU authorities, ensuring that only licensed operators can legally offer their services within the European market.
For crypto-asset service providers without an EU license, the definition of 'solicitation' has been significantly tightened. Under the new rules, any action that promotes, advertises, or offers crypto-asset services within the EU, even indirectly, will be considered solicitation. This includes widespread marketing campaigns that may reach EU residents, as they could expose the company to potential sanctions for MiCA violations.
ESMA recommends that unlicensed crypto providers in the EU adopt preventive measures, such as geoblocking, to avoid exposing their promotional material to the European public. However, if an EU client contacts voluntarily, reverse solicitation remains legal.
The concept of solicitation is broad and includes any promotional action, advertisements, or presentations of services to EU clients through traditional or digital channels. In-person meetings and content generated by third parties, such as influencers whose audience includes EU residents, are also covered. An important point is that educational materials and industry events may be an exception, provided they do not include links to foreign platforms offering crypto-asset services.
Despite these strict regulations, non-EU companies can still offer their services to European clients without infringing MiCA, as long as they do not engage in any form of active solicitation. To stay within the legal framework and reduce risks, following several best practices is recommended.
Maintaining clear records: It is crucial to document all interactions with EU clients to demonstrate that communication was initiated by the client and not by the company.
Reviewing marketing materials: All promotional strategies, advertisements, and social media posts must be carefully reviewed to avoid unintentional exposure to EU audiences.
Geoblocking as a last resort: For some companies, implementing geographic restrictions may be a simpler solution instead of continuously monitoring their marketing strategies and avoiding any potential infringement.
After an EU client registers on a foreign platform without prior solicitation, strict limitations still apply. Displaying promotional content of other crypto services available on the platform is not allowed, preventing the use of promotional banners, email updates, or pop-ups.
The enforcement of these regulations can be interpreted in different ways, and their impact will depend on legal practice. With MiCA coming into effect, offering crypto services in the EU has become increasingly restrictive. An example of this is the exclusion of stablecoins like USDT from the European market due to new regulatory requirements.
While technically non-EU companies can still operate in the European market under certain conditions, the implementation of ESMA's measures makes this option practically unfeasible. The recommendation to apply geoblocking to EU users makes it clear that the goal is to limit the participation of crypto-asset providers not registered under EU regulations.
At Q2BSTUDIO, we understand the importance of complying with current regulations and ensuring that technology companies successfully navigate this changing environment. As experts in development and technology services, we support companies in adapting to international regulations, optimizing their platforms and digital strategies to ensure compliance without sacrificing business growth. Our team is prepared to provide solutions tailored to the evolving sector and ensure safe expansion opportunities within and outside the European market.
