WEMIX (wemix) 
ESMA Proposes Knowledge and Competency Standards for Crypto Service Providers
The European Securities and Markets Authority (ESMA) is seeking public feedback on proposed knowledge and competency standards for crypto service providers. In a recent consultation paper, ESMA outlined new rules requiring crypto service providers to ensure their staff have the right qualifications and training to give advice or information on crypto assets to the public.
The regulator aims to “ensure a minimum level of knowledge and competence of staff providing advice and information” to bolster investor protection measures and foster trust within crypto markets under the European Union’s Markets in Crypto-Assets regulation.
Proposed Rules and Requirements
Under the proposed rules, crypto firms must ensure their staff meets knowledge standards, with advisors required to have:
- Formal education
- Supervised experience
- Pass an assessment before offering advice
Those providing general information must complete at least:
- 80 hours of training
- Six months of supervised experience
Advisors need a three-year degree or equivalent experience. Staff must also undergo:
- Annual competency reviews
- Ongoing professional development, with 10 hours of training for information providers and 20 hours for advisors
Documentation and Assessment
Crypto service providers would be required to:
- Document staff qualifications
- Regularly assess training effectiveness
- Ensure automated advisory services meet these standards
New hires without the required qualifications would only be able to work under supervision for a maximum of four years.
Importance of Knowledgeable Service Providers
“The volatility of many crypto-assets, the continuous creation of new assets, and the limited knowledge of market participants, especially retail investors, make knowledgeable and competent service providers key to ensuring clients receive appropriate levels of knowledge and competence and that firms act in the best interests of clients.”
Interested parties have until April 22, 2025, to submit their feedback on the proposed guidelines. ESMA is expected to finalize the rules in the third quarter of 2025, with the new requirements expected to take effect 60 days after publication in all official EU languages.
This development comes as crypto companies seek MiCA licenses, marking the European Union’s first comprehensive regulatory framework for the sector. Several firms have already secured approval as member states implement the regulation’s requirements.
Stay up-to-date with the latest news and developments in the world of cryptocurrency and finance on Global Crypto News.
