The European Securities and Markets Authority (ESMA) has launched a public consultation to create guidelines for assessing the knowledge and competence of crypto advisors under the Markets in Crypto-Assets Regulation (MiCA).

This initiative is part of a broader effort to implement MiCA, which aims to establish a harmonized legal framework for digital assets across the EU by 2025, focusing on transparency, investor protection, and prudential oversight.

The consultation paper, released on February 17, 2025, invites feedback from market participants, including crypto-asset service providers and industry associations, with the consultation period open until April 22, 2025.

The proposed guidelines aim to standardize qualifications and experience for professionals advising on digital assets, ensuring consistent professionalism and client protection throughout the EU.

ESMA emphasizes that the rapid growth of the crypto market necessitates higher operational standards to protect investors, particularly retail ones.

Minimum qualifications proposed for crypto advisors include holding a tertiary education degree or equivalent, completing at least 160 hours of professional training, and having a minimum of one year of relevant experience.

All crypto professionals will be required to pass an assessment exam and complete ongoing training—10 hours annually for information providers and 20 hours for advisors—to maintain their knowledge.

Crypto service providers must conduct annual reviews of staff development needs, supervise unqualified employees, and regularly assess knowledge and competence.

Staff are expected to understand key features and risks of crypto assets, market operations, pricing, and possess knowledge about blockchain technology and regulatory frameworks.

The guidelines will also emphasize understanding specific risks associated with crypto-assets, including market volatility, cybersecurity threats, blockchain governance, and liquidity risks.

Major exchanges such as OKX, Crypto.com, and Bybit are actively seeking MiCA licenses to operate in Europe under these new regulations.

Final guidelines are anticipated to be published in the third quarter of 2025, following the consultation period.