GBBC Submits Responses to ESMA Consultation Papers on Reverse Solicitation and Criteria for the Classification of Crypto-Assets as Financial Instruments

Global Blockchain Business Council (GBBC), with the help of our members, is pleased to have submitted two responses to European Security and Market Authority (ESMA)'s Consultation Papers:

ESMA75-453128700-52 MiCA Consultation Paper - Guidelines on the qualification of crypto-assets as financial instruments

We welcome the work of ESMA in providing its suggestions. We recognise the difficulty to establish clear criteria in a space where 27 member-states may have different definitions of what a financial instrument or security is. We understand that this multiplicity of definitions is a major challenge and we believe that it is time for the Union to ensure consistency and clarity.

Read our full response here.

ESMA35-1872330276-1619 Consultation Paper - Guidelines on reverse solicitation under MiCA

We believe ESMA should take into account various factors when assessing whether activities are targeted towards EU customers, including the language used, the geographic location of the audience, and the specific content and context of the activities. This nuanced approach can help avoid misinterpretations and ensure that regulatory requirements are applied appropriately. A balanced and pragmatic approach is needed to distinguish between activities targeting EU customers and purely local activities. By considering the specific circumstances and intentions behind these activities, regulators can mitigate the risk of overreach and support the continued participation of non-EU financial service providers in the EU market.

By promoting transparency and cooperation between regulators and industry participants, regulators can effectively enforce regulations while minimising unnecessary burdens and disruptions to legitimate business activities.

Read our full response here.

GBBC thanks ESMA for working with industry and asking for comments.