The European Securities and Markets Authority launched a consultation to determine the level of knowledge and expertise that professionals who provide crypto-assets services have under the Markets in Crypto-Assets Regulation.
The consultation published on 17 February aims to standardize qualifications and experience for individuals who provide advice or information about digital assets.
Minimum competency standards
The draft guidelines set out clear criteria regarding professional qualification, experience and continuing education of staff working for crypto-asset services providers (CASPs).
According to the proposed proposal, those who provide investment advice in cryptoassets will be required to meet more stringent competency standards than individuals offering information services.
ESMA has stated that advisers are required to have a tertiary or equivalent education, complete at least 160-hours of training and possess at least a one-year relevant work experience. The professionals who provide general information about crypto assets would need to have a professional qualification consisting of at least eighty hours, and six month of experience under supervision.
All professionals must undergo an assessment exam and complete ongoing training — a minimum of 10 hours annually for information providers and 20 hours for advisors — to ensure their knowledge remains up to date.
Guidelines also stress understanding of crypto-specific risks including market volatility and cybersecurity threats. Blockchain governance is also highlighted, as well as liquidity risk associated with large asset holders.
ESMA also suggests that companies conduct internal audits every year to determine whether staff adheres to these standards.
Regulations
The consultation comes as MiCA’s provisions governing crypto-asset services take effect across the EU, with full implementation expected in 2025. The regulations aims at establishing a harmonised legal framework covering investor protection, transparency and prudential control.
ESMA stated that due to the rapid growth in the cryptocurrency industry, it is necessary for the standards of operations to be raised. This will ensure the protection of investors.
The regulator says:
“The rapid expansion of crypto markets has increased risks, particularly for retail investors. Ensuring that service providers maintain a baseline level of expertise is crucial for investor protection and market integrity.”
Although the guidelines align closely with MiFID II, they include cryptocurrency-specific considerations to reflect the unique nature blockchain-based assets.
Participants in the market, such as CASPs and investors, financial institutions and industry associations are encouraged to give feedback on proposed standards.
ESMA is accepting comments up until 22 April 2025 and will publish final guidelines during the third quarter.
Postings in: Featured Crypto, Regulation The Author 
Assad Jafri
AJ has been a journalist for more than a decade, and he’s spent the last decade honing his craft around the world. He specializes in financial reporting and now concentrates on cryptocurrency.
Email @Saajthebard on LinkedIn Editor
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