According to a proposal made yesterday by the European Securities and Markets Authority (ESMA), crypto companies headquartered outside the EU will have to comply with strict requirements when offering their services to European clients in order to avoid unfair competition.
The bloc approved last year the MiCA, a regulation aimed at regulating the cryptocurrency market.
Now, the new EU proposals have focused on crypto asset companies from outside the EU that want to offer services to local customers directly instead of opening a local office.
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The proposal will be subject to public consultation until the end of April.
The statement reads:
"The proposed guidance confirms ESMA's previous message that the provision of crypto-asset services by a third-country firm is limited under MiCA to cases where the client is the exclusive initiator of the service."
The measure seeks to require foreign firms to open a branch or subsidiary in the EU.