The European Securities and Markets Authority (ESMA) released new guidelines to assess competence requirements for employees working in crypto-related businesses. The new guideline aligns with European Union’s Markets in Crypto-Assets Regulations (MiCA).
On 17 February 2025, the European watchdog released a consultation paper.
According to the paper, the key objective of the draft guidelines is to ensure a minimum level of knowledge and competence of staff providing advice and information on crypto-assets or crypto-asset services to clients.
Explore: Crypto.com Receives MiCA Approval For All EEA Member States. Best Crypto To Buy?
Compliance With MiCA: Key Priority
EU watchdog @ESMAComms has proposed new guidelines mandating crypto service providers to ensure staff meet qualification standards and receive ongoing training.#ESMA #CryptoRegulation https://t.co/meoSSScyQ8
— Cryptonews.com (@cryptonews) February 18, 2025
The ultimate aim of this new step is “to enhance investor protection and foster investors’ trust in the crypto-asset markets.”
For this, ESMA sought feedback from various stakeholders, including crypto asset service providers, investors, and financial institutions involved in the crypto market.
In ESMA’s view, the level and depth of knowledge and competence expected for staff providing advice should be of a higher standard than those that only give information on crypto-assets or crypto-asset services.
The authorities want crypto-asset service providers to ensure that their employees know, understand, and apply the crypto-asset service provider’s internal policies and procedures designed to ensure compliance with MiCA. Furthermore, continuous or on-going professional development is required in order for staff to hold the “appropriate qualification.”
To fall in line with MiCA, many companies secured their licenses in Europe recently. Singapore’s Crypto.com announced securing a MiCA license on 12 February 2025. With this approval, the company can officially launch its services across all 30 European Economic Area (EEA) member states. The EEA consists of 27 European Union (EU) member states along with Iceland, Liechtenstein, and Norway.
Bitpanda, an Austrian fintech unicorn, received its MiCA license on 27 January 2025.
KX is yet another blockchain company that announced on 27 January 2025 that it is MiCA certified.
European Watchdog ESMA Sets January Deadline To Align With MiCA Stablecoin Rules
ESMA issued a critical directive for crypto firms, specifically stablecoin issuers, operating within the EU.
On 17 January 2025, ESMA mandated compliance with MiCA. ESMA set a 31 January 2025 deadline for crypto asset service providers (CASPs) to address non-compliant stablecoins.
ESMA’s directive will now compel CASPs to either restrict or delist non-compliant stablecoins.
According to guidance from the European Commission, any CASP offering non-compliant stablecoins risks violating MiCA regulations. This could lead to severe penalties, including fines and potential bans from operating within the EU.
Key Takeaways
- The ultimate aim of this new step is “to enhance investor protection and foster investors’ trust in the crypto-asset markets.”
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The key objective of the draft guidelines is to ensure a minimum level of knowledge and competence of staff providing advice and information on crypto-assets or crypto-asset services to clients.
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