EBA Clarifies PSD2–MiCA Interplay for EMTs with No Action Letter

The letter offers both short-term regulatory relief and long-term legislative direction aimed at avoiding unnecessary dual authorisations. 

 

Transition Period and Temporary Relief 

While PSD2 remains in force until the expected application of PSD3 and the Payment Services Regulation (PSR), the EBA advises national competent authorities (NCAs) not to require immediate PSD2 authorisation from CASPs that provide services related to EMTs—specifically those relating to the transfer, custody, and administration of EMTs. Authorisation requirements will apply only from 2 March 2026 onwards. 

Until then, CASPs should not be subject to enforcement of selected PSD2 provisions, including: 

• Safeguarding of funds; 
• Consumer disclosures (e.g. charges, execution times, identifiers); 
• Open banking requirements. 

CASPS must still comply with other provisions, such as strong customer authentication (SCA) for accessing custodial wallets and initiating EMT transfers, reporting payment fraud, and capital requirements. 

 

Avoiding Dual Authorisation 

At the heart of the EBA’s position is the principle that each financial activity should fall under a single regulatory regime. The EBA considers dual licensing burdensome and unnecessary for CASPs already authorised under MiCA. The No Action letter advises that most EMT-related transactions should remain within the MiCA framework alone during the transition period, —except where explicitly identified as qualifying payment services. 

For example, activities such as exchanging crypto-assets for fiat or other crypto-assets, or intermediating purchases using EMTs, are not to be considered payment services under PSD2 and therefore should not require PSD2 licensing. 

 

Long-Term Recommendations 

Looking ahead, the EBA recommends: 

• Amending MiCA to incorporate or reference relevant PSD2 (or future PSD3/PSR) provisions for EMT-related services, ensuring adequate consumer protection and payment security; 
• Alternatively, adjusting PSD3/PSR to include applicable standards for CASPs without requiring them to obtain a second authorisation; 
• Explicitly avoiding a scenario where EMTs are excluded from both frameworks, which would risk regulatory arbitrage and undermine market confidence. 

Regulatory Rationale 

While the EBA recognises the strength of MiCA in covering crypto-asset services, it does not consider MiCA authorisation alone sufficient to mitigate risks associated with EMT transactions. The success of PSD1, PSD2 and the Electronic Money Directive (EMD) in building a reliable EU payments market supports the need for consistency in how payment services are regulated, regardless of the underlying technology. 

The No Action letter makes clear that the aim is not deregulation, but rather a proportionate and coherent regulatory approach during this transitional period, one that avoids duplicated efforts while maintaining strong safeguards for market stability and consumer confidence. 


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