ABBL Institutional
ABBL calls for greater proportionality in ESMA’s MiCA guidelines on CASP staff competence
Published on 07 May 2025
Earlier this year, the European Securities and Markets Authority (ESMA) launched a public consultation on its draft guidelines on the assessment of knowledge and competence for staff providing crypto-asset services under the Markets in Crypto-Assets Regulation (MiCA). The aim was to establish a consistent EU-wide standard of professionalism and expertise for staff offering information or advice on crypto-assets and related services.
Summary
Concerns around a “one-size-fits-all” approach
In its official response to the consultation, the ABBL called for a more proportionate, risk-based approach to the proposed training requirements.
While broadly supporting the objectives of the guidelines — in particular, ensuring that staff advising on crypto-assets are suitably qualified — the ABBL raised concerns about the current framework’s lack of flexibility. The draft takes a “one-size-fits-all” approach, failing to reflect the diversity of business models and client types within the crypto-asset service provider (CASP) landscape.
Proposing a more nuanced training threshold
The ABBL pointed out that some CASPs exclusively serve institutional clients and offer limited services such as custody, transfer, or reception and transmission of orders. These activities differ significantly from retail-facing services and do not require the same intensity of training.
To this end, the ABBL proposes reducing the required training threshold to 20 hours — as opposed to ESMA’s suggested 80 hours — for staff at CASPs that deal solely with institutional clients.
Additional considerations for effective implementation
The ABBL further emphasised the importance of:
- Differentiating between execution services and technical custody roles
- Promoting supervisory convergence
- Ensuring mutual recognition of CASP-related qualifications across EU Member States
These measures are essential for the effective and practical implementation of MiCA without undermining investor protection.
Supporting the sector through constructive dialogue
As the EU moves into the full application of the MiCA framework, the ABBL’s response highlights the need to balance investor safeguards with operational feasibility, particularly for institutions already under robust regulatory supervision.
The ABBL continues to support its members by actively engaging with EU institutions and national authorities. The association plays a key role in shaping a regulatory environment that fosters innovation, legal certainty, and long-term competitiveness.
The ABBL remains fully involved in the ongoing implementation of MiCA — including guidelines, technical standards, and national measures — to ensure Luxembourg’s financial ecosystem is well-prepared for the digital future.
Andrey Martovoy
Senior Adviser - Innovation & Digital, ABBL
Published on 07 May 2025