European regulator proposes MiCA guidelines for cryptocurrency staff competence
The European Securities and Markets Authority is collecting feedback on draft guidelines for employees of crypto asset service providers.
As part of the EU’s broad crypto legislation, the European Securities and Markets Authority has proposed recommendations for assessing the knowledge and competence criteria for crypto asset service providers’ employees.
A consultation paper released on February 17 by the European Securities and Markets Authority (ESMA) seeks to consult interested parties “to produce guidelines for the assessment of knowledge and competence of natural persons advising on crypto assets or information about crypto assets or crypto-asset services, on behalf of crypto-asset service providers.”
The recommendations would be compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which was released in June 2023.
The rules seek to provide common standards for workers who provide crypto advice and information to clients, improve investor protection, and foster trust in cryptocurrency markets.
According to the suggested standards, employees must comprehend the essential characteristics and dangers of crypto assets, market functioning and pricing, and be conversant with blockchain technology. They also need to understand the regulatory structures and tax ramifications.
“Particular care should be taken when giving information concerning risks related to the crypto-assets characterized by higher levels of complexity and volatility,” it said.
It also sets basic requirements for crypto personnel, such as past expertise, ongoing “professional development,” and a degree in a related discipline.
Crypto service providers and corporations would be required to do an annual review of staff development requirements, monitor unqualified employees, keep staff qualification records, and conduct regular tests of knowledge and competence.
The securities regulator is soliciting feedback on proposed questions about the competency of staff who advise crypto investors on the asset class, as well as alternative recommendations.
The draft is accessible for public comment until April 22, and ESMA expects to issue final guidelines in the third quarter.
In January, ESMA encouraged crypto asset service providers to take action against non-MiCA-compliant stablecoins like Tether’s USDT. Meanwhile, Tether voiced disappointment with several exchanges’ hasty delisting of its stablecoin in Europe.
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