European Regulator Proposes New Guidelines for Crypto Staff Competence Under MiCA

The European Securities and Markets Authority (ESMA) has unveiled a set of proposed guidelines aimed at assessing the knowledge and competence of staff working at crypto asset service providers. This move is part of the European Union's broader efforts to regulate the cryptocurrency industry under the Markets in Crypto-Assets Regulation (MiCA), a framework introduced in June 2023.

In a consultation paper released on February 17, ESMA seeks feedback on the proposed guidelines, which would set out the competence and qualification standards for individuals who provide advice or information on crypto assets and services. The paper highlights that these guidelines are intended to ensure that staff offering crypto-related services are adequately equipped with the necessary knowledge and skills.

Aiming for Consistency and Investor Protection

The primary goal of the guidelines is to establish consistent standards for staff within the crypto industry, thereby enhancing investor protection and fostering greater trust in the rapidly evolving crypto markets. According to the proposal, crypto asset service providers would be required to ensure that their employees have a solid understanding of key areas such as:

• The key features and risks associated with crypto assets

• How crypto markets function and how asset pricing works

• A solid grasp of blockchain technology

• Knowledge of relevant regulatory frameworks and tax implications

ESMA also emphasizes that special care should be taken when providing information on crypto assets characterized by high volatility and complexity, noting that these areas carry elevated risks for investors.

Minimum Qualifications for Crypto Staff

The proposed guidelines outline the minimum qualifications required for staff working in crypto asset advisory roles. These include:

• Relevant previous experience in the crypto or financial sector

• Ongoing professional development to keep skills and knowledge up to date

• A degree in a relevant field such as finance, economics, or technology

Additionally, the guidelines propose that crypto service providers conduct annual reviews of their staff’s development needs, ensure unqualified staff are properly supervised, and maintain comprehensive records of employee qualifications. Regular assessments of staff competence would also be required to ensure ongoing compliance with the guidelines.

Open Consultation and Feedback

ESMA is now seeking feedback on the proposed guidelines, specifically regarding the competence requirements for staff advising crypto investors. The consultation period is open until April 22, and ESMA expects to publish the final guidelines in the third quarter of 2025.

This move comes as major cryptocurrency exchanges, including OKX, Crypto.com, and Bybit, seek or have already obtained licenses to operate under the MiCA regulations in Europe. These new guidelines are set to play a crucial role in shaping the standards of practice for crypto service providers across the continent.

Addressing Non-Compliant Stablecoins

In related news, ESMA has also urged crypto asset service providers to take action regarding non-MiCA-compliant stablecoins, such as Tether (USDT). The regulator called on providers to ensure that these stablecoins comply with the new regulatory standards. In response, Tether expressed dissatisfaction over the swift delisting of its stablecoin by certain European exchanges, highlighting the ongoing tensions between regulators and the crypto industry.

As the EU moves forward with its regulatory framework, the proposed guidelines by ESMA are expected to be a key step in ensuring that crypto markets in Europe operate with higher standards of professionalism, competence, and transparency.