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 event brought together several market participants, including licensed and prospective entities, legal and compliance professionals, and regulatory experts. 

Key highlights from the workshop included:

• Conflict of Interest Management: CASPs were reminded that identifying and disclosing conflicts of interest alone is not sufficient. They must implement measures to prevent and manage these conflicts in practice, beyond mere disclosure.
• Client Best Interest and Best Execution: CASPs are expected to act in their clients’ best interests during trade execution. This includes a comprehensive assessment of factors such as price, cost, speed, execution likelihood, and settlement reliability. The MFSA emphasised that best execution is not solely about obtaining the best price, but also about optimising overall client outcomes through a holistic approach.
• Marketing and Communication Standards: All marketing material should be fair, clear, and not misleading. In addition, transparency around promotions and incentives is essential, including clearly outlined conditions. Incentives must be proportionate, relevant to the service or product, and not of substantial value.
• Compliance Function: The MFSA stressed the importance of a permanent, effective, and independent compliance function within CASPs, as a critical pillar of sound governance and regulatory adherence.
• Website Disclosures and Best Practice: As a best practice, regulatory and risk disclosures should be prominently included in the footnotes across all pages of CASPs’ websites. During the event, reference was also made to the recent thematic review of CASP websites which the MFSA has undertaken, and which findings were issued in a Dear CEO Letter to the sector.

Other topics were also addressed during the workshop, namely, Reverse Solicitation, Advisory and Portfolio Management, Transfer Services and Complaints Handling.