European Union: European Securities and Markets Authority opened consultation on guidelines on criteria on assessment of knowledge and competence under Markets in Crypto Assets Regulation (MiCA)

On 17 February 2025, the European Securities and Markets Authority (ESMA) opened a consultation on the proposed guidelines for the criteria for the assessment of knowledge and competence under the Markets in Crypto Assets Regulation (MiCA) until 22 April 2025. The guidelines aim to provide a framework to ensure that individuals offering advice or information on crypto-assets are adequately qualified and competent. The guidelines emphasise the importance of understanding the unique characteristics and risks associated with crypto-assets, including their volatility, cybersecurity risks, and the impact of economic and regulatory changes. It mandates that staff must be knowledgeable about the functioning of distributed ledger technology (DLT) and the specific protocols used, as well as the broader market dynamics that influence crypto-asset values. Additionally, the guidelines require staff to understand the differences in investor protection between crypto-assets and traditional financial instruments, as well as the implications of market abuse and anti-money laundering regulations.