European Watchdog Outlines Framework For Assessing Competence Of Employees In Crypto Firms

The European Securities and Markets Authority (ESMA) released new guidelines to assess competence requirements for employees working in crypto-related businesses. The new guideline aligns with the European Union’s Markets in Crypto-Assets Regulations (MiCA).

On 17 February 2025, ESMA released a consultation paper. According to the paper, the key objective of the draft guidelines is to ensure a minimum level of knowledge and competence of staff providing advice and information on crypto-assets or crypto-asset services to clients.

Compliance with MiCA is a key priority for ESMA. The aim of this new step is to enhance investor protection and foster investors’ trust in the crypto-asset markets. ESMA wants crypto-asset service providers to ensure that their employees meet qualification standards, understand internal policies, and undergo ongoing professional development.

To align with MiCA regulations, many companies have recently secured licenses in Europe. Companies like Crypto.com, Bitpanda, and KX have all received MiCA licenses.

ESMA also issued a directive for stablecoin issuers operating within the EU, mandating compliance with MiCA by 31 January 2025. Non-compliant stablecoins may face restrictions or delisting, as per ESMA’s guidance.

Overall, these developments aim to create a more regulated and compliant environment for crypto firms in Europe under the MiCA framework.