The European Securities and Markets Authority (ESMA) has initiated a consultation period in an effort to set knowledge and competence levels of workers in crypto-asset service providers in order to enhance investor protection and improve confidence in the crypto sector.
The European Securities and Markets Authority (ESMA) is launching a public consultation to decide on the basis used to assess the knowledge and competence of staff who work for crypto-asset service providers (CASPs). The action is part of continuing efforts to protect investors and enhance trust in the rapidly evolving crypto-asset market.
Key Objectives of the Consultation:
Minimum Competence Level: ESMA recommends that information providers or advice providers on crypto-assets must at least possess a minimum level of competence and knowledge. This includes the knowledge of distributed ledger technology features, risks, and functionality and the relevant crypto-assets and services offered.
Organizational Obligations: CASPs would be bound to have well-defined in-house policies wherein their personnel would need to adhere to such levels of proficiency. Intermittent testing, lifetime learning, and extensive training sessions are some measures recommended.
The consultation paper requires that advisors must undergo at least 20 hours of professional development every year, while information providers must undergo at least 10 hours of development. Furthermore, advisors should have a tertiary qualification with supervised experience, while information providers should have professional experience.
ESMA ensures it doesn’t rush when it adds that these guidelines intend to counterbalance the unique features and risks of the crypto-asset market rather than the usual ones of the traditional markets. By ensuring the CASP personnel is well-trained and qualified, ESMA anticipates establishing a secure environment for the investors and market participants within the crypto-asset market.
Interested parties and stakeholders are invited to submit their comments on the draft guidelines by no later than 22 April 2025. ESMA will take the comments into consideration and release the final guidelines in the third quarter of 2025.
