The European Securities and Markets Authority (ESMA) has proposed new guidelines to assess the competence of crypto-asset service providers’ staff across the European Union.
On February 17, 2025, the regulator published a consultation paper outlining proposed rules aimed at standardizing the knowledge and competence requirements for professionals who provide crypto advice and services. The paper highlighted that retail investors have a limited understanding of crypto financial products. It emphasized that service providers must effectively communicate the associated risks to their clients.
The regulator stated the measures are designed to elevate professionalism within the industry, ensure that clients receive accurate and responsible guidance, and help ensure that providers are well-informed to
“fulfil their obligations set out under Markets in Crypto-Assets Regulation (MiCA), such as the requirement to act in the best interests of clients.”
The guidelines require staff to demonstrate a deep understanding of the features and risks of crypto-based products, market dynamics, blockchain technology, regulatory frameworks, and tax implications. To maintain these standards, the proposal mandates continuous professional development, requiring at least 20 hours of annual training for those providing crypto-related advice and 10 hours for those offering information.
The proposed rules also mandate that crypto service providers must conduct annual staff development reviews, maintain qualification records, and perform regular competence assessments.
The ESMA has initiated a public consultation on the guidelines, which will remain open until April 22, 2025. It indicated that the final policies are expected to be published in the third quarter of the year.
Meanwhile, these guidelines come as MiCA went into full effect in December 2025. Major exchanges such as OKX, Crypto.com, and Bitpanda have already announced successful acquisitions of MiCA licenses. Meanwhile, Binance and Coinbase have restructured their services to align with the new regulatory framework, which is expected to mitigate risks associated with crypto investments.
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