ESMA Introduces MiCA Guidelines to Ensure Crypto Staff Competency

Proposed guidelines have been introduced by the European Securities and Markets Authority (ESMA) to assess the credentials and experience of employees at crypto asset service providers. These suggestions are in line with the Markets in Crypto-Assets Regulation (MiCA) of the European Union, which seeks to create a transparent regulatory framework for the cryptocurrency sector.

ESMA’s consultation document, which was released on February 17, requests input from the sector on creating guidelines to guarantee that advisors on cryptocurrency assets are knowledgeable. Enhancing investor protection, standardizing industry procedures, and fostering confidence in cryptocurrency marketplaces are the goals.

Proposed Requirements for Crypto Professionals

The guidelines outline essential competencies for staff providing crypto-related advice and information. Employees must demonstrate an understanding of blockchain technology, crypto market operations, pricing mechanisms, and associated risks. Additionally, they need familiarity with relevant regulatory frameworks and tax implications.

The paper emphasizes the need for caution when advising on complex or highly volatile crypto assets. It also suggests establishing minimum qualifications, requiring staff to have relevant degrees, industry experience, and ongoing professional development.

Crypto firms must conduct annual assessments of their employees’ qualifications, supervise unqualified staff, maintain training records, and ensure continuous knowledge updates. These measures aim to enhance the reliability of crypto advisory services.

ESMA is gathering feedback on its proposed rules and is open to alternative recommendations. The consultation period will run until April 22, with final guidelines expected in the third quarter of 2025.

As MiCA moves toward full implementation, regulatory efforts like this will shape the future of crypto services in the EU. The focus on education and professional standards could increase investor confidence and bring more structure to the rapidly evolving crypto industry.