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18/02/25
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ESMA Proposes New Competency Standards for Crypto Service Providers
The European Securities and Markets Authority (ESMA) has put forward new guidelines aimed at establishing the knowledge and competency standards for employees within crypto asset service providers. This initiative is part of the European Union’s comprehensive regulatory framework for cryptocurrencies, specifically the Markets in Crypto-Assets Regulation (MiCA), which was published in June 2023.
The consultation document, released on February 17, is designed to gather input from stakeholders in order to create a structured approach to assessing the qualifications of individuals who provide recommendations and information on crypto assets. The intention behind these guidelines is to reinforce investor protection, establish trust, and standardize the level of proficiency amongst those offering advice in this complex field.
Under the proposed regulations, employees will be expected to possess a thorough understanding of the fundamental characteristics, risks, and market dynamics associated with crypto assets. An awareness of blockchain technology, regulatory framework implications, and tax responsibilities is also essential. Special attention should be directed to communicating the risks linked to particularly complex and volatile crypto assets.
The guidelines further outline minimum qualifications for personnel in the crypto sector, suggesting that previous experience, ongoing professional education, and relevant academic credentials are necessary. Additionally, crypto service providers will be required to conduct annual evaluations of their staff’s development needs, oversee individuals lacking proper qualifications, and keep comprehensive records of employee competencies.
ESMA is inviting feedback on these proposed standards and is open to alternative suggestions until April 22. The authority anticipates publishing finalized guidelines in the third quarter of the year. Meanwhile, notable exchanges like OKX, Crypto.com, and Bybit are actively pursuing licenses to comply with the emerging MiCA regulations, as crypto service providers are urged to address issues related to non-compliant stablecoins.
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