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The European Securities and Markets Authority is seeking feedback on proposed guidelines for staff at crypto asset service providers.
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The European securities regulator has suggested guidelines to assess the knowledge and competence requirements for staff at crypto asset service providers as part of the EU’s wide-sweeping crypto regulations.
A consultation paper from the European Securities and Markets Authority (ESMA) released on Feb. 17 aims to consult interested parties “for the purpose of producing guidelines for the assessment of knowledge and competence of natural persons giving advice on crypto assets or information about crypto-assets or crypto-asset services, on behalf of crypto-asset service providers.”
The guidelines would be in compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCA), published in June 2023.
The guidelines aim to establish consistent standards for staff providing crypto advice and information to clients, enhance investor protection, and promote trust in crypto markets.
Under the proposed guidelines, staff must understand the key features and risks of crypto assets, market functioning, and pricing and be familiar with blockchain technology. They also need to know about regulatory frameworks and tax implications.
“Particular care should be taken when giving information with respect to risks related to the crypto-assets characterized by higher levels of complexity and volatility,” it stated.
EMSA inviting comments on its consultation paper. Source: EMSA
It also proposes minimum qualifications for crypto staff, including previous experience, continued “professional development,” and a degree in a related field.
Crypto service providers and companies would need to undertake an annual review of staff development needs, supervise unqualified staff, maintain staff qualification records, and carry out regular assessments of knowledge and competence.
The securities regulator is seeking feedback on the proposed questions regarding the competence of staff advising crypto investors about the asset class while calling for alternative suggestions.
The document is open for consultation until April 22, with ESMA expecting to publish final guidelines in the third quarter.
Related: Tether disappointed with ‘rushed actions’ on MiCA-driven USDT delisting in Europe
Major exchanges such as OKX, Crypto.com and Bybit have obtained or are seeking to obtain licenses to allow them to operate under the MiCA regulations in Europe.
In January, ESMA urged crypto asset service providers to take measures regarding non-MiCA-compliant stablecoins such as Tether’s USDT (USDT). Meanwhile, Tether expressed disappointment over the rushed delisting of its stablecoin in Europe by some exchanges.
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This article first appeared at Cointelegraph.com News
