Raising The Bar On Crypto Knowledge
ESMA’s Proposed Proficiency Standards
The European Securities and Markets Authority (ESMA) is rolling out new guidelines under the Markets in Crypto-Assets Regulation (MiCA)—and if you are in Compliance, you will want to pay attention. These rules are not just about ticking boxes; they are about ensuring that professionals in the crypto space actually know what they’re doing.
Why This Matters
As crypto-assets continue to integrate into mainstream finance, regulators want to make sure that those offering crypto services are competent, knowledgeable, and equipped to protect investors. ESMA’s latest Consultation Paper on Knowledge and Competence Guidelines sets the bar for what crypto-asset service providers (CASPs) need to know before they engage with clients.
Key Takeaways
- Minimum Standards for Crypto Competence
CASPs must demonstrate that their employees possess adequate knowledge and skills to advise clients, execute transactions, and safeguard investor interests. This is not just about understanding blockchain—it includes financial markets, risk management, and compliance best practices.
- Training & Certification Requirements
Employees must undergo structured training programs, ongoing education, and assessments to prove they’re up to speed with crypto regulations and risks. The goal? To prevent misinformation, reduce market abuse, and increase transparency.
- Compliance, Compliance, Compliance
Firms will need to document their employees’ qualifications, monitor their learning progress, and ensure competence remains up to date. For those working in regulated sectors, maintaining Continued Professional Development (CPD) is often essential to retain their licenses or professional qualifications. Regulators will not just take a firm’s word for it—expect audits and accountability.
- Aligning With Traditional Finance
ESMA is making it clear: crypto professionals should meet knowledge standards similar to those in traditional finance. If firms are advising clients on digital assets, they should be just as well-trained as those dealing with stocks, bonds, or derivatives.
What This Means for StarCompliance Clients
For firms leveraging StarCompliance’s surveillance and conduct monitoring solutions, these guidelines reinforce the importance of comprehensive compliance programs. As knowledge and competence become regulatory requirements, firms will need technology-driven solutions to track employee training, certify expertise, and ensure compliance with MiCA’s evolving rules.
The Bottom Line
Crypto markets are maturing, and with that comes regulation that demands professionalism, transparency, and accountability. The firms that take knowledge and compliance seriously will have the edge—not just with regulators, but with investors and clients who expect trustworthy market participants.
How StarCompliance Can Help
Keeping track of employee training and certifications can be a daunting task. StarCompliance’s (Star) Training & Competency (T&C) solution can help firms meet all types of tracking and facilitation of training and professional development, including ESMA’s new proficiency standards by ensuring employees are trained, competent, and compliant.
With Star T&C, firms can:
- Track and manage employee competency through structured training and assessments
- Monitor performance and compliance risks with ‘RAG’ (red, amber, green) dashboards and KPI tracking
- Ensure ongoing professional development with automated CPD tracking and licensing frameworks
- Integrate with existing Learning Management Systems (LMS) for a streamlined training experience
By providing comprehensive training oversight, Star’s T&C solution helps firms enhance compliance, protect investors, and build trust in an evolving regulatory landscape. To learn more about Star’s T&C solution, click here.
