ESMA’s new guidelines for crypto asset transfer – find out what is changing!

The European Securities and Markets Authority (ESMA) on February 26, 2025 published guidelines on rules and procedures for cryptoasset transfer services. This document, aims to unify the standards applicable to cryptoasset transfer service providers and increase the protection of customers using such services.

What changes is ESMA introducing to the transfer of cryptoassets?

Cryptoasset transfer service providers should establish, implement and maintain appropriate policies and procedures to ensure that customers are fully informed of the terms and conditions of cryptoasset transfer services. This information should be provided to the customer in electronic format with sufficient advance notice before entering into a contract. 

The ESMA guidelines require that the information provided include, at a minimum:

• The name of the service provider, the address of the head office and contact information, including e-mail address,
• the name of the supervisory authority with jurisdiction over the service provider,
• description of the key features of the cryptoasset transfer service,
• a description of the procedure for initiating the transfer, giving consent, and the possibility to withdraw the instruction,
• the conditions under which the provider may reject the transfer of cryptoassets,
• the method of determining the time of acceptance and execution of transfer instructions, and any applicable deadlines,
• information on supported blockchain networks (DLTs) and their impact on the transfer of cryptoassets,
• maximum transfer execution time,
• fees and commissions associated with the transfer, including network fees,
• customer communication channels, including technical requirements for hardware and software,
• the language of the contract and the languages of customer service,
• the procedure for notifying the customer of suspicious transactions and potential security risks,
• the provider’s liability for unauthorized or erroneously executed cryptoasset transfers,
• the procedure for terminating a contract for cryptoasset transfer services.

Service providers should also ensure that customers can receive or download the cryptoasset transfer service agreement and related information throughout the contractual relationship. In the event of any changes to the terms of service, customers must be informed of them well in advance.

In addition, ESMA recommends that service providers provide customers with educational materials on the rights and risks associated with cryptoasset transfers to help them better understand how the market works.

What information should be provided before and after the transfer?

Before executing the transfer, the service provider must provide the client with information regarding the irreversibility of the transaction and all fees associated with its execution. Upon completion of the transfer, the client should receive a report containing:

• sender and recipient data,
• addresses of the crypto-asset wallets,
• the unique transaction reference number,
• the amount and type of cryptoassets transferred,
• the amount of fees charged.

What is the processing time and transaction deadline?

The guidelines require service providers to set maximum execution times for transfers and indicate how many blockchain confirmations are required for a transaction to be considered irreversible. These procedures are intended to increase the transparency and predictability of cryptoasset transfer services.

Rejection, suspension and return of funds

ESMA’s guidelines require service providers to have a clear policy for rejecting or suspending transfers and refunding funds. The reasons for such action should always be communicated to the client, and in justified cases, the provider should inform about the options for resolving the problem.

Who is responsible for incorrectly executed transactions?

Crypto service providers are liable for unauthorized or improperly executed crypto transfers. ESMA’s guidelines stipulate that the customer must be informed of his or her rights and the procedures involved in seeking redress in such situations.

How will the new regulations affect the cryptoasset market?

ESMA’s new guidelines introduce significant changes to the regulation of cryptoasset transfers, imposing a number of obligations on service providers to enhance customer protection. Transparency of rules, the obligation to provide full information, and the definition of procedures regarding execution times and liability are key elements of the new approach to regulating this segment of the financial market.

Implementation of these rules will become mandatory 60 days after the guidelines are published on ESMA’s website.

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