As best as I can tell you need to have T1-4 clears to progress and participate. I want to say someone who didn't go to Norg was ineligible to participate on the test server (and he didn't have his wins) but if someone wants to they can try to fight in someone's ally without the KI's (or I can pop for you just to check) and we'll have our answer.

But yeah, I think you do need the clears and I've been going back through so everyone has.