The European Securities and Markets Authority (ESMA) has unveiled proposed guidelines to assess the knowledge and competence of staff at crypto asset service providers, a move that aligns with the European Union’s wider crypto regulatory framework under the Markets in Crypto-Assets Regulation (MiCA). The consultation, which was released on February 17, seeks feedback from stakeholders to develop standards that would ensure staff providing crypto-related advice or information are adequately qualified.
Guidelines in Response to MiCA Regulations
ESMA’s proposal aims to enhance investor protection and promote trust in the crypto market by establishing clear standards for staff at crypto service providers. These staff members, who offer advice on crypto assets or services, are expected to possess comprehensive knowledge of key crypto asset features, market dynamics, blockchain technology, and the associated risks. Furthermore, they should have a sound understanding of regulatory frameworks and tax implications.
In line with the MiCA regulations published in June 2023, the guidelines focus on ensuring that personnel involved in crypto transactions, trading, and advisory roles meet specific competency criteria.
“Particular care should be taken when providing information on the risks associated with crypto-assets, particularly those characterized by high volatility and complexity,”
the paper stated.
Key Qualifications for Crypto Service Providers
Under the proposed guidelines, ESMA emphasizes that staff at crypto asset service providers must meet certain qualifications. This includes previous experience in crypto-related roles, a degree in a relevant field, and ongoing professional development. The guidelines call for crypto firms to conduct annual reviews of their staff’s development needs, supervise unqualified employees, and maintain detailed records of staff qualifications.
Regular assessments of knowledge and competence will be essential for these service providers to stay in compliance with MiCA. This proactive approach to staff training and evaluation aims to ensure that clients receive reliable advice and that crypto assets are handled responsibly.
Seeking Stakeholder Feedback and Future Implementation
The guidelines are currently open for consultation until April 22, with ESMA expected to publish the final version in the third quarter of 2025. The feedback gathered will shape the regulatory framework, helping to establish uniform standards for the crypto sector across the European Union.
Several major crypto exchanges, such as OKX, Crypto.com, and Bybit, have either acquired or are in the process of obtaining licenses under MiCA. These regulations are part of a broader push to create a more regulated and secure environment for cryptocurrency businesses and investors.
Tether and Non-MiCA Stablecoins
In addition to the staff guidelines, ESMA has also called attention to non-MiCA-compliant stablecoins, such as Tether’s USDT. The authority has urged crypto service providers to take swift action regarding these stablecoins, which has led to several exchanges delisting them. Tether has expressed disappointment over the delisting of USDT by certain exchanges in Europe, claiming that these actions may hinder the broader crypto ecosystem.
Looking Ahead: Strengthening Crypto Markets
The proposed guidelines reflect the EU’s increasing commitment to creating a well-regulated crypto environment. By holding crypto service providers to higher competency standards, ESMA aims to enhance the credibility of the industry and offer greater protection for investors. This approach is expected to bring stability and transparency to the evolving crypto market, which has faced scrutiny due to its complexity and volatility.
As the crypto sector continues to grow, the establishment of clear regulations and staff competency standards will be essential in shaping the future of the industry. By fostering trust and protecting consumers, these measures will ensure that crypto assets are managed responsibly, paving the way for the long-term success of the crypto market within the European Union.
Related: Tether’s Legal Chief Stuart Hoegner Retires Following MiCA Regulations
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
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