The Markets in Crypto-Assets Regulation (MiCA) is entering its supervisory phase. Regulatory scrutiny is shifting to the delivery and quality of crypto-asset services.
ESMA’s Guidelines on the Criteria for the Assessment of Knowledge and Competence (the Guidelines) establish expectations regarding staff qualifications, experience, and ongoing training for the staff of crypto-asset service providers (CASPs). The Guidelines are set to become a key reference point for supervisory reviews across the EU – highlighting the importance of well-trained, competent teams in meeting regulatory standards and building client trust.
Who is in Scope?
The Guidelines apply to natural persons who:
- provide information on crypto-assets or services; and
- provide advice on crypto-assets or services
What Does Providing Information and Advice mean?
“Providing information” is defined broadly and considers a wide range of client-facing activities. It may, for instance, include:
- explaining how a service or product works;
- describing potential risks, costs, or fees;
- answering client questions about transactions, custody, or technical features; or
- presenting factual information that could shape a client’s understanding or decisions.
Once staff assess suitability or recommend a specific course of action, they are considered to be “providing advice”. This attracts higher knowledge and competence requirements.
Knowledge & Competence: Beyond Paper Credentials
ESMA makes clear that expertise is not achieved through qualifications alone. CASPs are expected to ensure that staff knowledge and competence is supported by:
- recognised qualifications and appropriate training;
- practical experience, including supervised activity where necessary; and
- internal assessment processes before staff are permitted to operate independently.
CASPs must be able to demonstrate how the assessment is maintained and reviewed over time.
Minimum CPD Requirements
A key feature of the Guidelines is the emphasis on continuous professional development (CPD).
ESMA specifies minimum CPD expectations as follows:
- Staff providing information should complete at least 10 hours of CPD per year.
- Staff providing advice should complete at least 15 hours of CPD per year.
CPD may be delivered through:
- external training programmes by recognised entities; or
- internally organised training – provided it is structured, documented and assessed.
In all cases, CPD should address both regulatory developments and crypto-asset-specific risks – reflecting the evolving nature of the industry.
Governance and Supervisory Expectations
CASPs are expected to define CPD requirements at firm level, maintain appropriate records, and periodically (re)assess competence. Regulators are likely to view training frameworks as an indicator of a CASP’s broader governance, conduct, and client-protection culture.
Is your firm confident that its knowledge, competence and training framework meets ESMA’s expectations under MiCA – or is there work to be done?
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