Third-country crypto-asset service providers and reverse solicitation

On 18 January 2023, the Dutch Central Bank (De Nederlandsche Bank, DNB) imposed a fine on Coinbase Europe Ltd (Coinbase) for offering crypto-asset services in the Netherlands without being duly registered. As follows from DNB's decision,2 Coinbase and DNB had differing ideas on whether servicing Dutch residents on the basis of reverse solicitation triggers the registration requirement of Art. 23b of the Dutch Act on the Prevention of Money Laundering and Terrorist Financing (Wet ter voorkoming van witwassen en financieren van terrorisme, Wwft).3

In short, reverse solicitation refers to the provision of financial services to a client on the client's own exclusive initiative. To various extents, this concept applies to cornerstone EU financial services legislation, such as MiFID II, AIFMD and UCITS IV.4 The most well-known example is MiFID II. Pursuant to Art. 42 MiFID II, the provision of an...

Verder in dit artikel:

1. Provision of financial services 'in the EU' and reverse solicitation: background and legal framework

1.1. 'Characteristic performance'

1.2. 'Targeting' and reverse solicitation

1.2.1.  'Targeting'

1.2.2.  Reverse solicitation

2. Crypto-asset services

2.1. AMLD5 and AMLR: 'Targeting'

2.2. MiCAR: 'Targeting' and reverse solicitation

2.3. Reverse solicitation under MiCAR: what to expect?

2.3.1. Differing interpretations and divergent practices

2.3.2. Reluctance to allow reliance on reverse solicitation

2.3.3. Effects of current activities on future reliance on reverse solicitation

3. Conclusion