European Securities and Markets Authority initiates public consultation on the formulation of crypto asset advisory standards

PANews February 18th news, according to Cryptoslate, the European Securities and Markets Authority (ESMA) launched a public consultation on guidelines for evaluating the knowledge and capabilities of professionals providing cryptoasset services under the Cryptoslate Market Regulation (MiCA). The consultation was released on February 17 and aims to standardize the qualifications and experience that individuals need to provide consulting or information to clients on digital assets.

The draft guidelines set clear standards for professional qualifications, work experience and continuing education for employees employed by cryptoasset service providers (CASPs). Under the proposal, individuals who provide investment advice on crypto assets must meet stricter capabilities requirements than those who provide basic information services. ESMA outlines the advisor must have a higher education degree or equivalent, receive at least 160 hours of professional training, and have at least one year of relevant experience. Those who provide general information on crypto assets need at least 80 hours of professional qualification training and six months of supervised experience. All professionals must pass the assessment exam and complete ongoing training – at least 10 hours per year for the information provider and at least 20 hours per year for the consultant – to ensure their knowledge is kept up to date. The guidelines also highlight the importance of understanding the risks of crypto assets, including market volatility, cybersecurity threats, blockchain governance, and liquidity risks associated with major asset holders. Additionally, ESMA proposes that businesses should conduct annual internal reviews to assess whether employees comply with these standards.

Market participants including CASPs, investors, financial institutions and industry associations were invited to provide feedback on the proposed criteria. ESMA will accept comments until April 22, 2025 and is expected to issue final guidelines in the third quarter of that year.