ESMA aims to set crypto proficiency standards
In the paper, ESMA said increasingly easy access to crypto trading for retail investors, coupled with an apparent lack of knowledge by investors, and the added risks posed by cryptoassets (compared with traditional financial instruments), poses an increased risk of retail investor harm. As a result, it’s essential that crypto firms’ employees who give advice in this area are capable of fulfilling their obligations under the new crypto regime, “such as the requirement to act in the best interests of clients,” it said.
Among other things, ESMA said these employees should understand the key characteristics, risks and features of cryptoassets and services, including the added risks posed by the complexity and…
