European Regulator Proposes MiCA Guidelines for Crypto Regulation

Jimmy Aki
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The European Securities and Markets Authority (ESMA) has released proposed guidelines under the Markets in Crypto-Assets Regulation (MiCA) to ensure staff at crypto asset service providers possess adequate knowledge and competence in crypto regulation.

Enhancing Staff Competence in the Crypto Sector

These guidelines, introduced on February 17, are part of the broader Markets in Crypto-Assets Regulation (MiCA) framework, which seeks to establish a unified approach to crypto regulation across the European Union (EU).

Under the proposed guidelines, ESMA emphasizes the necessity for staff at CASPs to possess a comprehensive understanding of various aspects of the crypto industry.

This includes knowledge of crypto assets’ fundamental characteristics and associated risks, insights into market operations and pricing mechanisms, and familiarity with blockchain technology.

Additionally, personnel are expected to be well-versed in crypto regulation, ensuring compliance with EU policies.

ESMA’s consultation paper states, “Particular care should be taken when giving information concerning risks related to the crypto-assets characterized by higher levels of complexity and volatility.”

This underscores the regulator’s focus on ensuring clients receive accurate and comprehensive information, especially concerning high-risk crypto assets.

To align with crypto regulation under the MiCA framework, ESMA proposes specific qualifications for individuals providing advice or information on crypto assets.

These qualifications encompass prior relevant experience, continuous professional development, and academic credentials in related disciplines.

Proposed Qualifications and Ongoing Professional Development

The consultation paper is open for feedback until April 22, 2025. ESMA aims to review the responses and publish the finalized guidelines by the third quarter of 2025.

This initiative is a significant step towards fortifying investor protection and fostering trust within the EU’s crypto markets.

The introduction of these guidelines signifies a pivotal moment for CASPs operating within the EU.

By mandating a standardized level of knowledge and competence among staff, ESMA aims to ensure that clients receive informed and reliable advice, thereby enhancing the overall integrity of the crypto regulation framework.

In anticipation of the finalization and implementation of these guidelines, several major crypto exchanges have proactively sought to align with MiCA regulations.

OKX has become one of the first global exchanges to receive MiCA licensing, enabling it to offer regulated services across 28 European Economic Area (EEA) countries.

This move reflects the exchange’s commitment to adhering to crypto regulation and providing secure services to its European clientele.

As regulators worldwide tighten oversight of the crypto industry, the Bank of England’s Prudential Regulation Authority (PRA) has introduced new rules requiring firms to disclose their exposure to crypto assets by March 2025.

This directive aligns with global regulatory efforts, particularly the Basel framework, which sets crypto holdings’ capital and risk management standards. Additionally, firms must outline any planned crypto activities up to 2029, focusing on risks tied to permissionless blockchains.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.