Key Notes

Key Notes:

The European Securities and Markets Authority (ESMA) has proposed strict guidelines requiring crypto firms to ensure their staff meet competency and regulatory standards before hiring.Crypto firms in Europe must ensure their staff meet new competency and training standards.The companies must now conduct annual competency reviews of employees and maintain detailed records to ensure compliance with ESMA’s new guidelines

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Europeans seeking jobs in the fast-growing crypto industry must now prove they have the expertise to meet new regulatory standards. The European Securities and Markets Authority (ESMA) has issued a set of proposed guidelines requiring crypto firms to ensure their employees meet strict knowledge and competency requirements before they can be hired or continue working in the sector.

According to an official announcement, the move aims to reshape hiring practices, introducing a new era where technical understanding and compliance awareness will be the keys to securing roles in the industry. As digital asset markets mature, the days of firms onboarding underqualified staff to handle complex financial services are coming to an end.

#ESMA launched a consultation on the criteria for the assessment of knowledge and competence of crypto-asset service providers’ staff giving information or advice on #CryptoAssets or crypto-asset services.

🗓️ Send your comments by 22 April 2025 → https://t.co/9t4at6MKzf. pic.twitter.com/NFUY7IV6dZ

— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) February 17, 2025

New Qualifications for Crypto Professional

Under the new proposed guidelines, anyone looking to work in a crypto-related position must demonstrate expertise in several key areas, including blockchain fundamentals, market operations, risk management, cybersecurity threats, and the regulatory framework governing digital assets.

For advisory roles, candidates will need to have either a three-year tertiary degree plus at least one year of supervised experience or other approved combinations of education and hands-on industry exposure. In addition, advisors will have to complete 20 hours of professional development training each year to keep their knowledge up to date.

For roles involving direct customer interactions, candidates must undergo a minimum of 10 hours of professional training, on top of their formal degree.

The regulator emphasized that while awareness of crypto has increased, in-depth knowledge among market participants remains limited—an issue it aims to address through these new hiring standards.

In addition to the hiring requirements, the new guidelines mandates crypto service providers to conduct annual competency reviews of their employees and maintain thorough documentation of their staff’s qualifications for regulatory audits.

According to the market watchdog, those who lack the necessary credentials may still work in the industry, but only under supervision for a maximum of four years.

Despite the strict nature of these proposals, ESMA has left room for industry input. The regulator is accepting public feedback on the proposed guidelines until April 22, after which it will finalize the rules based on stakeholder input by the third quarter of 2025.

According to the announcement, the new guidelines will fully be integrated into law 60 days after publication in all EU official languages.

Meanwhile, the latest move is part of ESMA’s broader effort to ensure the crypto industry aligns with traditional financial market standards. In January, the regulator introduced new rules aimed at preventing conflicts of interest among crypto firms.

At the time, the market watchdog disclosed that digital asset service providers must separate certain business activities for compliance purposes.

In March 2024, the regulatory authority officially established a set of rules for digital asset service providers operating within the country. These regulations define the specific criteria that companies must meet to obtain an operational license and legally conduct business in the European market.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

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