The European Union wants to monitor the encoding employees and corporate employees to books – TradingView news

The European Securities and Markets Authority (ESMA) has revealed comprehensive guidelines that require encrypted asset service providers to ensure that its employees meet the standards of knowledge and strict efficiency, which represents a great step towards the professionalism of industry under markets in encrypted assets (MICA).

ESMA proposes strict knowledge standards for encryption services providers

The proposed framework, which was released today (Monday) in a consulting paper, determines the minimum requirements for the continuous mandatory professional qualification and professional development of employees who provide advice and information in the encrypted assets of customers.

“ESMA launched a consultation on the standards of knowledge evaluation and the efficiency of CASPS service providers who provide information or advice on encrypted assets or encrypted asset services,” the organizer commented.

Under the proposed rules, employees who provide encryption advice must complete at least 20 hours of annual professional development, while those who provide information need at least 10 hours. The guidelines also indicate specific qualifications and expertise requirements, as consultants need either a three -year degree in addition to one year of supervision experience or alternative groups of education and practical experience.

This step comes at a time when retailers are increasingly reaching encryption markets through various platforms, and this is often with a limited understanding of the risks associated with it. ESMA noted that although awareness of encryption has grown significantly, the comprehensive knowledge of the market participants is still limited.

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The guidelines are distinguished between employees who provide general information and those that provide advice, with higher standards applied to consulting roles.

Service providers must ensure that their employees understand the main aspects of encryption principles, including:

• The basics of the technician of the distributing professor
• Market business and pricing mechanisms
• The risks of cybersecurity and protection standards
• Organizational frameworks and investor protection considerations
• Tax effects and cost structures

He will be asked for encryption service providers to assess employee efficiency annually and maintain detailed records for organizational review. New employees can only be required to work under supervision for a maximum of four years.

Mika updates

The consultation period continues until April 22, 2025, when ESMA is expected to publish the final guidelines in the third quarter of 2025. The rules will be valid after 60 days of publication in all official languages ​​of the European Union.

These requirements can significantly affect microcredit service providers who may struggle to meet reinforced training and supervision requirements. However, large institutions may generally welcome this step as a step towards greater maturity in the market.

MICA, which has become applicable to Asset Crypto services in December 2024, which creates a comprehensive regulatory framework for the European Union encryption industry.

In January 2025, the organizer presented more strict rules on how to deal with encryption companies with the conflict of potential interests. The new requirements are a fundamental shift in how these companies work, and they may require them to create separate legal entities when providing services that may collide with each other. The regulations also highlight the surveillance of personal transactions within these companies and expand what is considered compensation.