The European Securities Markets Agency (ESMA) has released comprehensive guidelines that require crypto asset service providers to ensure that crypto asset service providers meet strict knowledge and competency standards, and has announced the market for crypto asset (MICA) regulated markets. marks important steps to specializing in the industry.
The proposed framework was released today (Monday) in a consultation paper to establish minimum qualification requirements and mandatory, continuing professional development for staff who provide crypto assets advice and information to clients.
“ESMA has launched consultations on criteria for assessing knowledge and capabilities of Crypto Asset Service Providers (CASPS) staff.
The proposed rules require staff providing cryptographic advice to complete at least 20 hours of professional development per year, while those providing information require a minimum of 10 hours. The guidelines also require certain qualifications and experience requirements, and advisors require a 3-year tertiary degree plus an alternative combination of one year of supervised experience or education and work experience.
#ESMA has launched consultations on criteria for assessing the knowledge and capabilities of staff at crypto asset service providers who provide information or advice regarding the #CryptoAssets or Crypto-Asset services.
@Send a comment by April 22, 2025 → https://t.co/9t4at6mkzf. pic.twitter.com/nfuy7iv6dz
– ESMA -EU Securities Market Regulatory Authority (@ESMACOMMS) February 17, 2025
The move is often aware of the associated risks as retail investors are increasingly able to access crypto markets through various platforms. ESMA noted that while awareness of encryption has increased significantly, the comprehensive knowledge of market participants remains limited.
I know yours
The guidelines distinguish between staff providing general information and staff providing advice, and higher standards apply to the role of advisory.
Service providers need to ensure that staff understand important aspects of crypto assets.
- Fundamentals of distributed ledger technology
- Market features and pricing mechanisms
- Cybersecurity risks and protection measures
- Regulatory framework and investor protection considerations
- Tax impact and cost structure
Crypto service providers are required to assess staff capabilities each year and maintain detailed records for regulatory reviews. New staff who are not required to be qualified can only work under supervision for up to four years.
MICA Update
The consultation period will be held until April 22, 2025, with ESMA scheduled to release its final guidelines in the third quarter of 2025. The rules will take effect 60 days after they are published in all official EU languages.
These requirements can have a significant impact on small crypto service providers who may struggle to meet the requirements for enhanced training and supervision. However, larger institutions may generally welcome this move as a step towards increasing market maturity.
The guidelines complement MICA, which became applicable to crypto assets services in December 2024, establishes a comprehensive regulatory framework for the European Union’s crypto industry.
In January 2025, regulators introduced stricter rules on how crypto companies handle potential conflicts of interest. The new requirements represent a fundamental change in how these companies operate, potentially creating separate corporations when providing services that may conflict with each other. I’m requesting it. The regulations also highlight the monitoring of personal transactions within these companies, expanding what counts as compensation.
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