The Bank of Lithuania published a No Action letter clarifying how the EU Payment Services Directive (PSD2) interacts with the Markets in Crypto-Assets Regulation (MiCA) for crypto-asset service providers (CASPs) transacting electronic money tokens (EMTs). It states that, from 2 March 2026, CASPs carrying out EMT-related activities that qualify as payment services will need an additional authorisation to provide payment services. The letter notes that EMTs are dual-purpose instruments, constituting both electronic money and crypto-assets, and its recommendations apply to legal persons providing or intending to provide EMT-related services where these can qualify as payment services. Under PSD2, a crypto-asset transfer is treated as a payment service where it involves EMTs and is provided on behalf of the client; custody and administration of EMTs are also treated as a payment service, and custodial wallets are treated as payment accounts where they allow EMTs to be sent and received to and from third parties. By contrast, exchange of crypto-assets for funds and exchange of crypto-assets for other crypto-assets are not regarded as PSD2 payment services even where the exchange transactions involve EMTs. CASPs providing EMT-related crypto-asset services that are regarded as payment services must obtain payment institution authorisation by 1 March 2026 or move those services to an entity that already holds the relevant authorisation; otherwise, they will need to stop providing the in-scope services at the end of the transitional period. The No Action letter also provides advice on a simplified authorisation process, capital and own funds calculations, consumer protection, payment transaction security and safeguarding of clients’ funds during the transition.
Bank of Lithuania 2025-06-10
Bank of Lithuania requires crypto-asset service providers to obtain payment institution authorisation for certain electronic money token services by March 2026
The Bank of Lithuania issued a No Action letter clarifying the interaction between the EU Payment Services Directive (PSD2) and the Markets in Crypto-Assets Regulation (MiCA) for crypto-asset service providers (CASPs) dealing with electronic money tokens (EMTs). From 2 March 2026, CASPs conducting EMT-related activities qualifying as payment services must obtain additional authorisation. The letter outlines EMTs as dual-purpose instruments and provides guidance on authorisation processes, capital requirements, and consumer protection during the transition.