ESMA proposes guidelines for crypto staff expertise under MiCA

The European Securities and Markets Authority (ESMA) has launched a consultation on proposed guidelines to assess the knowledge and competence of staff at crypto-asset service providers (CASPs) under the Markets in Crypto-Assets Regulation (MiCA).

The consultation paper, released on February 17, seeks input from interested parties to produce guidelines for assessing the expertise of individuals providing advice or information on crypto-assets.

ESMA will accept comments until April 22, 2025, and expects to issue the final guidelines in the third quarter of 2025.

The guidelines aim to establish consistent standards, enhance investor protection, and promote trust in crypto markets.

Staff must understand the key features and risks of crypto assets, market functioning, pricing, and blockchain technology, as well as regulatory frameworks and tax implications.

"Particular care should be taken when giving information with respect to risks related to the crypto-assets characterised by higher levels of complexity and volatility," ESMA stated.

ESMA also proposes minimum qualifications, including experience, professional development, and a relevant degree.

CASPs would need to undertake annual staff development reviews, supervise unqualified staff, maintain qualification records, and regularly assess knowledge and competence.

Individuals providing crypto asset investment advice must meet stricter competency requirements than those offering basic information services.

ESMA specifies that advisors should possess a higher education degree or equivalent, undergo at least 160 hours of professional training, and have a minimum of one year of relevant experience. 

Personnel providing general information on crypto assets need at least 80 hours of professional qualification training and six months of supervised experience.

The guidelines also emphasise understanding risks unique to crypto assets, such as market volatility, cybersecurity threats, blockchain governance, and liquidity risks associated with major asset holders.

Market participants are invited to provide feedback on the proposed standards.