ESMA calls for feedback on ‘crypto’ staff competence guidelines

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The European Securities and Markets Authority (ESMA), the EU’s top financial markets regulator, has launched a consultation on guidelines for assessing the knowledge and competence of crypto-asset service providers’ (CASPs) staff.

ESMA seeks feedback from stakeholders and market participants about the minimum requirements of digital asset sector staff who advise customers and investors.

“The guidelines aim to ensure staff giving information or advising on crypto-assets or crypto-asset services have a minimum level of knowledge and competence, enhancing investor protection and trust in the crypto-asset markets,” said ESMA when announcing the consultation on February 17.

The move is intended to bring digital asset sector firms and their staff in compliance with the EU’s Markets in Crypto Assets Regulation (MiCA), which was published in June 2023 and fully came into force on December 30, 2024.

“Crypto-assets and crypto-asset services are increasingly easily accessible to EU retail investors,” said the consultation paper. “However, it seems that the knowledge of market participants, especially retail investors, about crypto-assets and the related services still seems to be limited.”

For this reason, argued the regulator, CASP staff must maintain an appropriate level of knowledge to fulfil their obligations set out under MiCA, such as the requirement to act in clients’ best interests.

Staff must understand the key features and risks of digital assets—such as market volatility and cybersecurity—be familiar with blockchain technology, and know about regulatory frameworks and tax implications.

“Particular care should be taken when giving information with respect to risks related to the crypto-assets characterised by higher levels of complexity and volatility,” read the paper, without elaborating on exactly to which crypto-assets this refers.

It also proposed minimum qualifications for digital asset staff, including previous experience, continued professional development, and a degree in a related field.

ESMA proposed that these new requirements be assessed “at least on an annual basis” in order to review the effectiveness of the policies and procedures.

The regulator is seeking feedback on these various proposals until April 22. Based on the input received, ESMA said it would prepare a final report on the guidelines to be submitted to the European Commission—the EU’s executive arm—in the third quarter of 2025.

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