LONDON—With U.S. consumers and credit union members continuing to buy cryptocurrencies, crypto companies based outside the European Union. will only be able to directly serve customers within the bloc under very limited conditions to avoid unfair competition, the European Securities and Markets Authority (ESMA) is proposing.
The EU approved the world's first comprehensive rules for crypto markets last year, known as MiCA.
"The proposed guidance confirms ESMA's previous message that the provision of crypto-asset services by a third-country firm is limited under MiCA to cases where the client is the exclusive initiator of the service," ESMA said in a statement, according to a report by Zawya.com.
‘Reverse Solicitation’
“Initiation by the customer is known as 'reverse solicitation' and a concept seen in other E.U. financial laws that the bloc's policymakers have tightened up on, putting pressure on foreign firms to open a branch or subsidiary in the E.U.,” Zawya.com explained.
The proposal is out for public comment until the end of April, with a final text due by the end of 2024.
The Ideal Valentine’s Day Gift for that Someone Special—Including You
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?