The European Securities and Markets Authority is shaking things up by proposing a new knowledge assessment for anyone giving advice or information about crypto-assets.

It’s all part of the ongoing effort to ensure that crypto service providers are acting in the best interests of their clients under the Markets in Crypto-Assets regulations.

Finally, one will need some competence to offering services

ESMA just released a consultation paper inviting feedback on these proposed knowledge tests, which will apply not only to advisors but also to those working behind the scenes at crypto-asset service providers, at CASPs.

They believe that everyone involved should have a solid understanding of the ins and outs of crypto to keep clients safe and informed.

After all, if you’re handling someone’s money, you better know what you’re doing.

The proposed assessment is modeled after existing guidelines from the MIFID II regulations, which govern advice on investment products.

ESMA has outlined 11 essential knowledge categories that staff should master, include understanding the risks associated with crypto-assets, tax implications, costs, and even how MiCA protections differ from those under MIFID II.

Training days

New hires would need to complete 80 hours of training and undergo six months of supervised work. If they’ve been around for a year or more, they’ll need to prove their competence through assessments.

And it doesn’t stop there, ESMA suggests that knowledge should be tested annually, with ongoing professional development required.

The consultation paper is open for public comments until April 25. Once finalized, these guidelines will come into effect 60 days after publication.

This is a big deal because it wants to enhance investor protection and build trust in the crypto market.

Knowledge and experience

As for stablecoins, ESMA has already set deadlines for national regulators to enforce policies by the end of Q1 2025.

They want to make sure everyone’s on the same page when it comes to compliance.

In a world where crypto is becoming increasingly mainstream, it’s pretty important that both advisors and information providers are equipped with the right knowledge.

So if you’re in this space or thinking about jumping in, now’s the time to brush up on your crypto skills.

Have you read it yet? Russia will dedicate power plants just for crypto miners?

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