ESMA Proposes Stricter Rules for Non-EU Crypto Firms Serving EU Clients
The European Securities and Markets Authority (ESMA) has proposed more stringent regulations for non-European Union (EU) cryptocurrency firms serving EU clients. These new rules will limit the capacity of non-EU firms to directly serve clients within the EU, even if they qualify under the 'reverse solicitation' exemption.
Under these proposed rules, non-EU firms can only engage with EU clients under highly rigorous requirements. These conditions bring about heightened scrutiny and regulatory compliance, aligning crypto assets more closely with established financial market norms.
The primary aim of these rules is to curb unfair competitive practices and ensure a level playing field for EU investors under the Markets in Crypto-Assets (MiCA) regulations. ESMA is diligently working to guarantee investor protection, market integrity, and financial stability within the EU's borders.
These proposals are open for public consultation until the end of April. The final guidelines are expected to be released by the end of 2024. This move is a significant step towards regulating the crypto space, ensuring that it aligns with the standards of traditional financial markets.