MiCA broadly allows the practice, but, compared to other EU financial service laws, includes stronger powers for supervisors to stop solicitation being abused – including an ad ban for unauthorized products. However, the detailed ground rules need to be set by the European Securities and Markets Authority (ESMA), which has to issue guidelines, and its officials already see this topic as a source of concern.
EU’s MiCA Law May Have an FTX-Shaped Loophole
