The European Securities and Markets Authority (ESMA) has proposed new guidelines to assess the knowledge and competence of staff at crypto asset service providers under the Markets in Crypto-Assets Regulation (MiCA). This announcement was made in a paper released on February 17.
According to the consultation paper, ESMA outlines specific knowledge and competence requirements for staff at crypto asset service providers (CASPs) operating under MiCA. The document emphasizes the need for employees to understand crypto-asset risks, market operations, blockchain technology, and regulatory frameworks. It aims to ensure consistent standards across the European Union. The paper also proposes minimum qualifications, ongoing professional development, and annual staff assessments to enhance investor protection and market integrity.
The European Union’s Markets in Crypto-Assets Regulation (MiCA) seeks to harmonize crypto regulations across its 27 member states. However, concerns over regulatory overreach persist. According to CCN, feedback from industry stakeholders highlights that MiCA’s requirement for CASPs to submit a three-year operational outlook is seen as excessive and difficult to comply with due to the sector’s rapid evolution. Additionally, firms must meet strict requirements for cybersecurity, client fund segregation, and regulatory reporting. These compliance burdens raise concerns that they could stifle innovation and deter new entrants into the market.
In countries like Poland, cryptocurrency companies such as Binance have obtained regulatory approval by registering as Virtual Asset Service Providers (VASPs) with Polish authorities. This registration process involves compliance with local Anti-Money Laundering (AML) regulations, including implementing robust Know Your Customer (KYC) procedures and ensuring the segregation of client funds. For instance, Binance's Polish entity has been granted VASP registration by the Polish Tax Administration Chamber, allowing it to legally offer crypto asset exchange and custody services within the country.
According to ESMA, it is an independent EU financial regulatory agency established in 2011 to strengthen investor protection and promote stable financial markets across the European Union. Headquartered in Paris, France, ESMA develops regulatory frameworks, supervises financial entities, and ensures consistent enforcement of EU securities laws. As part of its mandate, ESMA plays a key role in implementing MiCA by overseeing CASPs and harmonizing regulatory standards across 27 member states.