The statement also reminded CASPs of the issues that they should consider when providing unregulated products and services, recommending that they should be particularly vigilant about "avoiding any client confusion regarding the protections attached to unregulated products and/or services." 

ESMA said that in order to avoid any misunderstanding "CASPs should clearly communicate the regulatory status of each product or service in all client interactions and at every stage of the sales process." 

In addition, ESMA reminded cryptoassets entities of their obligation "to act fairly, professionally and in the best interests of their clients, ensuring that all information, including marketing communications, is fair, clear and not misleading."

The document:

• provides guidance on the minimum level of knowledge and competence of staff through examples (including on professional qualification and appropriate experience for the provision of information or advice); and
• addresses specific features and risks of cryptoassets markets and services (e.g. high volatility of cryptoassets and cyber security risks) through the criteria for the assessment of the relevant staff’s knowledge and competence.

The guidelines will help CASPs to meet their obligations and act in the best interest of their clients. They also support competent authorities in adequately assessing how CASPs meet these obligations. The objective is to enhance investor protection and trust in the cryptoasset markets. 

ESMA conducted a public consultation on these guidelines to gather the views of stakeholders, including the Securities and Markets Stakeholder Group (SMSG). The final report includes feedback to the comments received during the consultation.

Compliance table on MiCA cryptoasset transfer Guidelines, which provides information on the procedures and policies, including the rights of clients, in the context of transfer services for cryptoassets under MiCA on investor protection.

Compliance table on MiCA reverse solicitation Guidelines, which provides details on situations in which a third-country firm is deemed to solicit clients established or situated in the EU and the supervision practices to detect and prevent circumvention of the reverse solicitation exemption  under the MiCA.

Compliance table on MiCA suitability and portfolio periodic statement Guidelines, which provides guidelines on certain aspects of the suitability  requirements and format of the periodic statement for portfolio management activities under MiCA. 

The report contains information about business models, types of DLT financial instruments offered, and technical or legal issues encountered by supervisors to date. It also analyses the types of exemptions requested by DLT market infrastructures and the conditions under which National Competent Authorities (NCA’s) have granted those exemptions (including the compensatory measures imposed to mitigate risks).   

These guidelines are issued under Article 16(1) of the ESMA Regulation and Article 2(5) of MiCA. The purpose of these guidelines is to "specify conditions and criteria for determining whether a cryptoasset should qualify as a financial instrument and therefore ensuring the common, uniform and consistent application of the provisions in Article 2(4)(a) of MiCA. Furthermore, these guidelines provide clarifications on certain features of utility tokens, NFTs and hybrid tokens."