The European Securities and Markets Authority (ESMA) has launched a public consultation on new guidelines aimed at assessing the knowledge and expertise of employees working for crypto-asset service providers (CASPs). This initiative aligns with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which took full effect on December 30, 2024, establishing a unified regulatory framework for crypto-assets across EU member states.
Ensuring Staff Competence in Crypto Services
The proposed guidelines focus on ensuring that professionals offering advice or information on crypto-assets meet a minimum level of expertise. ESMA aims to enhance investor protection and build trust in the rapidly growing crypto market by requiring staff to demonstrate:
- A deep understanding of crypto-assets, including their key features and associated risks.
- Knowledge of market operations, pricing mechanisms, and blockchain technology.
- Familiarity with relevant regulatory requirements and tax implications.
By setting these standards, ESMA seeks to professionalize the sector and ensure that investors receive accurate and reliable information.
Key Requirements for Staff Qualification
To meet the proposed standards, ESMA suggests several criteria for evaluating staff competence, including:
- Minimum qualifications such as industry experience, academic degrees in related fields, and ongoing professional development.
- Annual competency reviews to assess staff development needs.
- Supervision of unqualified personnel to ensure proper guidance.
- Detailed record-keeping of staff qualifications and training.
- Regular assessments to ensure knowledge remains up to date.
These measures aim to create a well-informed workforce capable of guiding investors effectively and mitigating risks in the crypto industry.
Consultation Period and Industry Feedback
The consultation paper, published on February 17, 2025, invites industry stakeholders to provide feedback on the adequacy of the proposed qualification and experience requirements. The consultation remains open until April 22, 2025, after which ESMA plans to finalize and release the guidelines in the third quarter of the year.
Strengthening the European Crypto Market
With MiCA now in full effect, European regulators are working to create a harmonized and secure crypto environment. By setting clear competence standards for CASP employees, ESMA aims to improve transparency, foster trust, and safeguard investor interests.
As the crypto industry continues to evolve, regulatory oversight remains crucial in maintaining market integrity. Industry participants are encouraged to engage in the consultation process to help shape a robust and effective regulatory framework for the future of crypto-assets.
