ESMA’s Guidelines on the criteria for the assessment of knowledge and competence

The European Securities and Markets Authority (ESMA) has released a Consultation Paper outlining draft guidelines on the criteria for the assessment of knowledge and competence for staff providing information or advice on crypto-assets or crypto-asset services under the Markets in Crypto Assets Regulation (hereinafter: ‘Guidelines’). This consultation paper was published on 17 February 2025. 

The Guidelines aim to establish consistent, efficient, and effective supervisory practices within the European System of Financial Supervision (ESFS) and ensure the common application of Articles 68(5) and 81(7) of the Markets in Crypto Assets Regulation (hereinafter: ‘MiCA’) . The Guidelines apply to competent authorities and crypto-asset service providers (hereinafter: ‘CASPs’) as defined in Article 3(1)(15) of MiCA. The Guidelines are relevant to the provision of crypto-asset services listed in Article 3(1)(16) of MiCA.

The Guidelines outline specific requirements for staff giving information and those giving advice:

Staff providing information should understand the key characteristics and risks of crypto-assets, including DLT, volatility, cybersecurity risks, and market functioning. They must meet minimum qualification standards, such as 80 hours of training and 6 months' supervised experience, validated by an exam, or alternatively have at least one year of supervised experience. Existing staff with at least one year of relevant experience before the guidelines apply may be deemed sufficiently knowledgeable. Additionally, staff must undertake at least 10 hours of continuous professional development (CPD) annually, with knowledge assessed through exams.

Staff giving advice must fulfill all requirements for staff giving information, with deeper knowledge of portfolio management and diversification. They should meet higher qualification standards, such as tertiary education or professional training, plus at least one year of supervised experience validated by an obligatory exam, or relevant experience under MiFID II or IDD. Existing staff with at least one year of advisory experience prior to guideline application may already meet these standards. Additionally, they must complete at least 20 hours of annual continuous professional development (CPD), with knowledge verified through exams.

Organisational Requirements: CASPs should implement organisational measures to assess and maintain staff knowledge and competence, including evaluating qualifications and experience, conducting annual development reviews, keeping records for submission to authorities if requested, limiting supervised roles for unqualified staff to a set period (e.g., 4 years), and clearly defining roles for those giving advice versus information.

To read the full Guidelines, follow the link: https://buff.ly/Na48wDl