ESMA Consultation on Guidelines for the criteria to assess knowledge and competence under MiCA

The Regulation on Markets in Crypto-assets (“MiCA”) mandates the European Securities and Markets Authority (“ESMA”) to issue guidelines for the criteria for assessing knowledge and competence under MiCA (Article 81(15)).  On 17 February, 2025, ESMA published its Consultation Paper, setting out its proposed Guidelines. ESMA believes that all crypto-asset service providers (“CASPs”), not just those providing advice, should ensure that natural persons giving advice or information about crypto-assets or crypto-asset services possess the relevant knowledge and competence to fulfil their obligations. Crypto-assets and crypto-asset services are increasingly easily accessible to retail investors in the EU, although the knowledge of market participants, especially retail investors, is limited, thus creating a risk of potential detriment and harm.  The Guidelines are aimed at addressing this.

The Guidelines cover the following.

Guideline 1: General

CASPs must take sufficient steps to ensure that their staff providing information or advice on cryptoassets or crypto-asset services possess the necessary knowledge and competence to fulfil their obligations. In particular, crypto-asset service providers should ensure that their staff know, understand and apply the CASP’s internal policies and procedures designed to comply with MiCA.

The Guidelines set out a principle of proportionality. The level and depth of knowledge and competence expected for CASPs’ staff giving advice on crypto-assets and crypto-asset services should be of a higher standard than those that only give information on crypto-assets and crypto-asset services. CASPs' organisational requirements should ensure that the knowledge and competence of the staff giving information and advice on crypto-assets, or crypto-asset services, is assessed, maintained and updated appropriately.

At least annually, the CASP’s management body should assess and review the effectiveness of the policies and procedures to comply with this.

Guideline 2: Criteria for knowledge and competence for staff giving information about cryptoassets or crypto-asset services

In order to fulfil their obligations, CASPs should ensure that staff giving information about crypto-assets, or crypto-asset services, have the necessary knowledge and competence to understand key characteristics and risks related to crypto-assets, the crypto-asset services they offer, as well as the crypto-asset markets in which they operate. This includes the features and risks of those crypto-assets available through the CASP (such as volatility and cyber security risks), how crypto-asset markets function and how they affect the value and pricing of crypto-assets.  

Draft Guideline 2 also sets out minimum requirements for professional qualifications and experience for staff and sets out a minimum number of hours of professional development to be undertaken each year.

Annex 2

Annex 2 of the Consultation Paper contains the draft Guidelines for comment.

Next steps

The deadline for responses to the Consultation is 22 April 2025. ESMA is intending to publish a final report and the finalised Guidelines in the third quarter of 2025.

How we can help

If you are a CASP and you are unsure how these Guidelines may impact you, our team of experts can support in advising you on the regulatory requirements, and more broadly in how you can tackle a fast-moving regulatory environment. Please contact your usual contact at Charles Russell Speechlys, or a member of our Financial Services Regulation group.