I would like to get a legal reference from a European or someone who has looked into this situation.
The MiCa regulation itself defines this. In Article 61, they state the following:
Provision of crypto-asset services at the exclusive initiative of the client
1. Where a client established or situated in the Union initiates at its own exclusive initiative the provision of a crypto-asset service or activity by a third‐country firm, the requirement for authorisation under Article 59 shall not apply to the provision of that crypto-asset service or activity by the third‐country firm to that client, including a relationship specifically relating to the provision of that crypto-asset service or activity.
Without prejudice to intragroup relationships, where a third‐country firm, including through an entity acting on its behalf or having close links with such third‐country firm or any other person acting on behalf of such entity, solicits clients or prospective clients in the Union, regardless of the means of communication used for the solicitation, promotion or advertising in the Union, it shall not be deemed to be a service provided on the client’s own exclusive initiative.
Source:
Official MiCa textThus the OP is misleading. It is not "unenforceable", it was conceived this way from the start. In fact, financial regulations in most countries are this way - you are free to contract services in third party countries, and then their regulations apply. But these firms can't advertise on european platforms, as shown in the passage I marked in bold.
The companies thus have simply to evaluate if it makes sense to fully access the European customers via marketing, and if it makes sense for them to adapt to MiCa for this purpose.
AFAIK the service can then even offer SEPA payments (via third parties), i.e. "Euro Banking links". In Article 61, nothing is written about this.
