- ESMA offers new MICA directives to guarantee competence in cryptographic service providers.
- These standards focus on the protection of investors and market transparency.
- The final directives, shaped by the feedback of the stakeholders, are expected in the third quarter of 2025.
The European Securities and Markets Authority (ESMA) has published a consultation document establishing in-depth guidelines for the personnel of service providers of Crypto-Asset in order to acquire minimum levels of knowledge and skills.
The proposal, within the framework of the Crypto-Astets Regulatory Markets Plan (MICA), was made with the aim of strengthening the protection of investors and confidence in the space for reducing emerging digital assets.
Presented to be implemented on December 30, 2024, Mica releases the task of developing these regulations at ESMA. The strategy of the regulator targets crypto-specific problems such as the volatility of assets, cybersecurity and the low levels of knowledge of digital currencies.
Cryptographic guidelines for suppliers and information advisers
The regime proposed by ESMA puts proportionality first, with requirements proportional to the size and complexity of the service provider. The guidelines also distinguish two main roles: information providers and advisers.
Information providers must be informed of the natures inherent in digital assets, such as their costs and volatility, and their related risks. They must also comply with minimum professional requirements and engage in continuous professional development (CPD).
Advisers face more strict requirements. In addition to meeting the same minimum as information providers, they must also be experienced and well informed in portfolio management and adequacy requirements. References of experience and training have been created to ensure that advisers can better inform customers about cryptography investments.
Organizational responsibilities for compliance
The guidelines also extend to organizational responsibility. Crypto-ASET service providers must implement systems for the knowledge levels of their employees, and these must be monitored and measured. The processes must be written for facilitating observation by the regulator and to maintain compliance.
By obliging these requirements, ESMA intends to promote the contribution of service providers to reducing disinformation and strengthening confidence between investors. The requirements for these organizations also comply with the global objective of creating a safe and competent environment for the trading of crypto-active.
The feeders’ feedback shapes the future
The consultation period, ending on April 22, 2025, asks the participants in the commentary industry on project standards. The deadline provided for the finalized guidelines and the publication of its report is third 2025.
These efforts represent an important step towards the regulation of the cryptographic industry, in order to equip investors with precise advice and quality data. Imposing higher levels of knowledge and skills, ESMA hopes to reduce the related trade risks of cryptographic assets and promote higher confidence in this upcoming industry.
The feedback process will be essential to shape these standards for the purpose of meeting the variable needs of cryptographic space and maintaining the stability of the financial environment.
