Definition ∞ Reverse solicitation occurs when a client initiates contact with a financial service provider for a specific service, without any prior marketing or active promotion from the provider in that jurisdiction. This concept is crucial in international financial regulation, as it can exempt a firm from licensing requirements in a country where it does not actively market its services. It places the onus of initiation squarely on the client, rather than the firm. This principle helps define jurisdictional boundaries for regulatory oversight.
Context ∞ Reverse solicitation is a highly debated topic in cryptocurrency regulation, as digital asset firms often serve a global client base without physical presence in every jurisdiction. Regulators frequently scrutinize claims of reverse solicitation to prevent firms from circumventing local licensing and consumer protection laws. News reports often highlight enforcement actions where regulators dispute firms’ assertions of client-initiated contact. The interpretation of this concept will continue to shape the global regulatory landscape for crypto services.
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