Exemption or Prohibition? Neither. Will MiCA Reverse Solicitation Rule Impact Traditional Financial Services?

Things are never so bad they can’t be made worse.

Humphrey Bogart

We’ve been led by US and UK law firms to view reverse solicitation as either an exemption or a prohibition. But what if it’s neither? What if it’s simply the freedom for EU residents and investors to choose unauthorized firms on their own terms?

With MiCA, European regulators are tightening the rules, much like they did with pre-marketing under AIFMD. They’re defining solicitation in fine detail but continue to allow for genuine client initiative.

As attention-economy promotional tactics spread from crypto to traditional finance, the proper use of technology remains key to stay on the right side of the regulation.

In this edition of Timetofastforward we take a look at the interpretation of reverse solicitation under MiCA and the risk of spillover on traditional financial services and products.