ESMA Seeks Feedback on Crypto Asset Service Guidelines

According to PANews, the European Securities and Markets Authority (ESMA) has initiated a public consultation on guidelines for assessing the knowledge and competence of professionals providing crypto asset services under the Markets in Crypto-Assets Regulation (MiCA). Released on February 17, the consultation aims to standardize the qualifications and experience required for individuals offering advice or information on digital assets to clients. The draft guidelines set clear professional qualifications, work experience, and continuing education standards for employees of crypto asset service providers (CASPs). Under the proposal, individuals providing crypto asset investment advice must meet stricter competency requirements than those offering basic information services. ESMA specifies that advisors should possess a higher education degree or equivalent, undergo at least 160 hours of professional training, and have a minimum of one year of relevant experience. In contrast, personnel providing general information on crypto assets need at least 80 hours of professional qualification training and six months of supervised experience. All professionals must pass an assessment exam and complete ongoing training—at least 10 hours annually for information providers and 20 hours for advisors—to ensure their knowledge remains current. The guidelines also emphasize the importance of understanding risks unique to crypto assets, such as market volatility, cybersecurity threats, blockchain governance, and liquidity risks associated with major asset holders. Additionally, ESMA proposes that companies conduct annual internal reviews to assess employee compliance with these standards. Market participants, including CASPs, investors, financial institutions, and industry associations, are invited to provide feedback on the proposed standards. ESMA will accept comments until April 22, 2025, and expects to issue the final guidelines in the third quarter of the same year.