Europeans must improve crypto knowledge as ESMA tightens hiring standards

Candidates for advisory positions at cryptocurrency firms must have a three-year degree and at least one year of supervised industry experience, while also undergoing annual professional training.

Europeans seeking work 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 published 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 to work in the industry.

According to the official announcement, the move is intended to reshape recruitment practices and usher in a new era where technical understanding and compliance awareness will be key to obtaining industry positions. As the digital asset market matures, the days of companies hiring unqualified employees to handle complex financial services are coming to an end.

New qualifications for crypto professionals

Under the newly proposed guidelines, anyone seeking a crypto-related position will have to demonstrate expertise in several key areas, including blockchain basics, market operations, risk management, cybersecurity threats, and the regulatory framework governing digital assets.

For advisory positions, candidates will need to have a three-year college degree and at least one year of supervised experience, or another approved combination of education and industry practice experience. In addition, advisors must complete 20 hours of professional development training each year to keep their knowledge up to date.

For positions that involve direct interaction with clients, candidates will have to undergo at least 10 hours of professional training in addition to a formal degree.

The regulator stressed that while awareness of cryptocurrencies has increased, in-depth knowledge among market participants remains limited — something the regulator aims to address with these new hiring standards.

Annual assessment and supervisory training

In addition to the hiring requirements, the new guidelines mandate crypto service providers to conduct competency assessments of their staff annually and keep complete documentation of employee qualifications for regulatory audits.

Those lacking the necessary qualifications may still work in the industry, but will only be supervised for a maximum of four years, the market regulator said.

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

According to the announcement, the new guidelines will be fully incorporated into law 60 days after they are published in all official EU languages.

Tighter regulatory environment

Meanwhile, this latest move is part of ESMA’s broader efforts to ensure that the cryptocurrency industry meets the standards of traditional financial markets. In January this year, the regulator introduced new rules aimed at preventing conflicts of interest between cryptocurrency companies.

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

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