The European Securities and Markets Authority (ESMA) is inviting public input on proposed standards regarding the knowledge and qualifications required for cryptocurrency service firms.
In a consultation paper published on February 17, ESMA introduced new guidelines aimed at ensuring that professionals working for crypto service firms possess the necessary expertise and training to offer guidance or information on digital assets.
The goal of these regulations is to establish a baseline level of competency among employees providing such services, reinforcing investor protection and enhancing confidence in the crypto market under the EU’s Markets in Crypto-Assets (MiCA) framework.
Given the unpredictable nature of digital assets, the frequent introduction of new assets, and the generally limited awareness among market participants—particularly retail investors—the regulator considers it crucial for service providers to possess the appropriate level of expertise.
Under the new measures, crypto companies would be responsible for verifying that their employees meet the required expertise standards. Advisors must demonstrate formal education, relevant work experience under supervision, and pass competency assessments before they can provide financial advice. They are expected to have either a three-year academic degree or equivalent practical experience.
Those delivering general information about crypto assets must complete at least 80 hours of training and six months of supervised work experience. Additionally, all staff members would be required to engage in continuous professional development, undergoing competency evaluations annually. This includes a requirement of at least 20 hours and 10 hours of yearly training for advisors and information providers, respectively.
Crypto firms must also maintain records of staff qualifications and training progress while regularly assessing the effectiveness of their educational programs. Automated advisory services would need to align with these standards to ensure consistent and reliable information delivery. Employees who do not yet meet the necessary qualifications would be permitted to work under supervision, but only for a maximum period of four years.
Interested stakeholders have until April 22 to provide their feedback on the rules. ESMA will finalize the regulations in quarter three of 2025, with the requirements set to take effect sixty days after their official publication across all EU languages.
The rules come as numerous crypto firms work toward obtaining MiCA licenses, a significant step in the EU’s first structured regulatory approach to the industry. Several companies have already achieved regulatory approval as member states begin enforcing the MiCA framework.
In recent developments, Crypto.com, a Singapore-based firm, obtained a license in Malta shortly after receiving provisional approval, while Bitpanda secured its license from Germany’s financial regulator on the same day.
The ongoing rulemaking process under ESMA could influence how other jurisdictions approach regulation of crypto service providers. Firms like MicroStrategy Inc. (NASDAQ: MSTR) are therefore likely to keep tabs on the public input sent to the ESMA and its final regulations.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
