Hi guys,
Unfortunately, there is no Kitesurfing Instructor "license". We have a certification of a standard internationally recognized teaching system (IKO) but this is far from perfect.
Most if not all councils require people conducting a commercial activity (exchange of money for goods or services) to have a permit to use public lands and or waterways.
Many schools/instructors do not have this license to trade in a public space which means they are carrying out commercial activity in contravention to the law and often without adequate insurances. If there is an accident, the lawyers will not sue the instructor because they probably have nothing, but will sue the council for allowing the activity to take place in the first place. Then we have a problem.

Some councils seem happy enough to turn a blind eye to this sort of thing but it is still a matter of concern to them. It's just easier to ignore it and hope it goes away, or perhaps having someone teaching is better than noobs trying to work it out for themselves in public. Either way, it's not real good.
Mates teaching mates? This is OK so long as it isn't crowded at the beach, the person instructing looks at it from a perspective of protecting the sport and looking after their mates best interest (their well being). All safety and self rescue must be covered properly, however, most "mates" just try and get their buddy up and riding as fast as possible so they can get on the water too. This requires skipping a few basic and essential practices (ie the stuff they really need to know).
We see this regularly at our beach and the result is a pretty loose unit usually who wreaks havoc on the beach and on the water and can't be told better by anyone. The other issue is people coming down the beach with really old "C" kites and teaching themselves, this usually is a couple of boguns with plenty of tuff stickers, and their mates who bought their gear for $200 from the quokka or who bought it hot, and have brought down a bunch of beers/Jim beam cans to enjoy the show. We even had a few guys who didn't have a pump and so inflated the kite by mouth/lung power and caned themselves up and down the beach for an hour. We let these guys go as the beach was empty and it was really windy they couldn't launch the kite properly and figured they'd give up soon enough (which they did, and haven't been seen since). They walk away muttering something about stupid gay sport and we never see them again (thankfully).
Unfortunately there are certain personality types who cannot be told and must work it out for themselves, their pride usually turns them aggressive when confronted. I tried to offer help to a couple of guys who were trying to launch a 2003 Cab CO2 which they had added a 5th line to. It had way too much 5th line tension, too much back line tension and the front lines were loose. Funny enough they couldn't get it to launch. When I offered tuning advice, I was told it was "an old kite" and it was tuned fine that the problem was a tangled line. I tried explaining the problem with the rigging but was ignored and told they knew what they were doing. Fine!

We (all responsible kiters), are the protectors of our own sport and beach access. It is up to us to make sure safe practices happen. Do the right thing and get involved to protect your access. This may be pointing the hapless learner in the direction of a good school, or it might mean giving them a few pointers if the location allows it, or it might mean intervening in a situation where a learner is about to launch a 14m "C" kite under inflated, in 25 knots.
We are ALL the protectors of our sport. Ignorance, apathy and ambivalence will fuel problems in the future of our sport.
It really is up to you!