ESMA Proposes MiCA Guidelines to Strengthen Crypto Service Provider Standards

ESMA Introduces MiCA Guidelines to Raise Standards for Crypto Service Providers

The European Securities and Markets Authority (ESMA) has proposed new guidelines under the Markets in Crypto-Assets (MiCA) framework to enhance knowledge and competence standards for staff at crypto service providers (CASPs). The move aims to increase investor protection and build greater trust in the European crypto market.

What Are ESMA’s Proposed Guidelines?

Under the proposed MiCA regulatory framework, ESMA seeks to establish minimum competence and knowledge requirements for employees of crypto trading platforms, exchanges, and custodial services operating in the EU.

The key aspects of the proposal include:

Why Does This Matter?

The MiCA framework, which comes into effect in 2024-2025, is the first comprehensive set of EU-wide crypto regulations. ESMA’s additional guidelines seek to:

These guidelines align with MiCA’s broader goal of creating a safer and more transparent crypto environment in the EU.

The Industry’s Response

Crypto service providers and industry experts have expressed mixed reactions to the proposal:

Some firms may have to invest heavily in staff training and compliance, increasing operational costs.