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The European Securities and Markets Authority (ESMA) proposed a set of guidelines aimed at assessing the knowledge and competence of individuals who provide advice or information on crypto assets and services.
This initiative is in line with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which was published in June 2023, and seeks to enhance investor protection and promote trust in the burgeoning crypto markets.
The guidelines presented in a consultation paper on February 17 require crypto service provider staff to have a thorough understanding of the characteristics and risks associated with crypto assets, market operations, pricing, and blockchain technology. They must also be knowledgeable about regulatory and tax implications.
The proposed standards emphasize the importance of conveying information carefully, especially regarding crypto assets that are complex and highly volatile.
ESMA’s proposal includes minimum qualifications for individuals working in the crypto sector, such as relevant experience, ongoing professional development, and a degree in a related field. Crypto service providers would be responsible for conducting annual reviews of staff development needs, overseeing unqualified employees, maintaining records of staff qualifications, and regularly assessing their knowledge and expertise.
The regulator is actively seeking input on the consultation paper, which includes questions about the competence of staff advising on crypto investments, and is open to alternative suggestions. Feedback is invited until April 22, with the expectation that the final guidelines will be published in the third quarter.
The move comes as major cryptocurrency exchanges like OKX, Crypto.com, and Bybit are pursuing or have already obtained licenses to operate in compliance with MiCA regulations in Europe.
Earlier in January, ESMA called for action from crypto asset service providers concerning non-MiCA-compliant stablecoins, such as Tether’s USDT, which led to Tether expressing disappointment over the hasty delisting of its stablecoin by some European exchanges.
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