European Regulator Proposes New Framework for Employee Competence in Cryptocurrency Firms
The European Securities and Markets Authority has announced guidelines to ensure employees in crypto-related businesses possess adequate competence.
The European Securities and Markets Authority (ESMA) has unveiled new guidelines aimed at determining the competence requirements for employees engaged in crypto-related businesses. This initiative aligns with the European Union’s Markets in Crypto-Assets Regulations (MiCA).
On February 17, 2025, ESMA released a consultation paper.
The primary goal of these draft guidelines is to ensure that staff providing advice and information on crypto-assets or crypto-asset services have a minimum level of knowledge and competence.
Explore: Crypto.com Receives MiCA Approval For All EEA Member States. Best Crypto To Buy?
Compliance With MiCA: A 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 these new steps is “to enhance investor protection and foster investors’ trust in the crypto-asset markets.”
ESMA has sought feedback from various stakeholders, such as crypto asset service providers, investors, and financial institutions active in the crypto market. They emphasize that staff providing advice should possess a higher level of knowledge compared to those who only provide information.
Companies providing crypto-asset services are urged to ensure their employees are knowledgeable about and compliant with MiCA regulations, including ongoing professional development.
In line with MiCA, various firms have secured licenses in Europe. Notably, Crypto.com announced acquiring a MiCA license on February 12, 2025, enabling them to commence operations across the 30 EEA member states. Recently, Bitpanda, an Austrian fintech unicorn, and KX, a blockchain company, also announced they had obtained their MiCA licenses.
European Watchdog ESMA Sets January Deadline To Align With MiCA Stablecoin Rules
ESMA has issued crucial directives for crypto firms, particularly stablecoin issuers, requiring them to comply with MiCA by January 31, 2025, or face restrictions or delisting of non-compliant stablecoins. Companies could face substantial penalties, including fines for violations.
Key Takeaways
- The ultimate aim of this new step is “to enhance investor protection and foster investors’ trust in the crypto-asset markets.”
- 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.
