The European Securities and Markets Authority is seeking public feedback on proposed knowledge and competency standards for crypto service providers.
In a Feb. 17 consultation paper, ESMA laid out new rules requiring crypto service providers to ensure their staff have the right qualifications and training to give advice or information on crypto assets to the public.
With this, the regulator aims to “ensure a minimum level of knowledge and competence of staff providing advice and information” to bolster investor protection measures and foster trust within crypto markets under the European Union’s Markets in Crypto-Assets regulation.
Under the proposed rules, crypto firms must ensure their staff meets knowledge standards, with advisors required to have formal education, supervised experience, and pass an assessment before offering advice.
Those providing general information must complete at least 80 hours of training and six months of supervised experience, while advisors need a three-year degree or equivalent experience. Staff must also undergo annual competency reviews and ongoing professional development, with 10 hours of training for information providers and 20 hours for advisors.
Additionally, crypto service providers would be required to document staff qualifications, regularly assess training effectiveness, and ensure automated advisory services meet these standards. Meanwhile, new hires without the required qualifications would only be able to work under supervision for a maximum of four years.
Given the “volatility of many crypto-assets,” the continuous creation of new assets, and the “limited knowledge of market participants, especially retail investors,” the regulator sees knowledgeable and competent service providers as key to ensuring clients receive “appropriate levels of knowledge and competence” and that firms “act in the best interests of clients,” the paper stated.
Interested parties have until April 22, 2025, to submit their feedback on the proposed guidelines. ESMA is expected to finalize the rules in the third quarter of 2025, with the new requirements expected to take effect 60 days after publication in all official EU languages.
The consultation paper comes as crypto companies seek MiCA licenses, marking the European Union’s first comprehensive regulatory framework for the sector. Several firms have already secured approval as member states implement the regulation’s requirements.
Last month, Singapore-based Crypto.com secured a MiCA license in Malta, just days after receiving provisional approval. On the same day, Bitpanda obtained its MiCA license from Germany’s Federal Financial Supervisory Authority.
