The European Banking Authority published a no-action letter, in the form of an Opinion, on the interaction between the Payment Services Directive 2 and the Markets in Crypto-Assets Regulation for crypto-asset service providers (CASPs) that transact electronic money tokens (EMTs). It advises the European Commission, Council and Parliament to ensure EU law avoids long-term dual authorisation for EMT transaction activity, and sets interim supervisory expectations for national competent authorities (NCAs) to limit PSD2 licensing and enforcement while PSD2 remains applicable. Under the approach, NCAs are advised to treat the transfer of crypto-assets as a PSD2 payment service where it involves EMTs and is carried out by entities on behalf of clients, and to treat custody and administration of EMTs as a payment service, with a custodial wallet treated as a payment account where it is held in the name of one or more clients and enables sending and receiving EMTs to and from third parties. PSD2 authorisation for these services would be required only from 2 March 2026, using streamlined procedures that maximise reliance on information provided during the MiCA CASP authorisation process; once authorised, NCAs are advised to deprioritise supervision and enforcement of selected PSD2 elements (including safeguarding and certain consumer disclosures and open banking) while insisting on compliance with others such as strong customer authentication for access to qualifying custodial wallets and EMT transfers, payment fraud reporting, and cumulative own-funds calculations. The Opinion also advises NCAs not to treat MiCA-defined crypto-to-fiat and crypto-to-crypto exchange services, or intermediation of purchases of crypto-assets with EMTs, as PSD2 payment services and therefore not to require PSD2 authorisation in those cases.
European Banking Authority 2025-06-10
European Banking Authority advises NCAs to defer and streamline PSD2 authorisation for CASPs transacting e-money tokens until 2 March 2026
The European Banking Authority issued a no-action letter advising against long-term dual authorisation for electronic money token (EMT) transactions under PSD2 and MiCA. It sets interim supervisory expectations for national authorities to limit PSD2 licensing and enforcement, treating certain EMT-related services as payment services only until March 2026. The Opinion clarifies that crypto-to-fiat and crypto-to-crypto exchanges, and intermediation of crypto-asset purchases with EMTs, should not require PSD2 authorisation.