European Banking Authority Clarifies Regulatory Framework for Electronic Money Tokens under PSD2 and MiCA

The European Banking Authority's (EBA) Opinion, published on 10 June 2025, provides crucial guidance on how electronic money tokens (EMTs) interact with the second Payment Services Directive (PSD2) and the Markets in Crypto-Assets Regulation (MiCA). The Opinion aims to resolve the regulatory grey area for crypto-asset service providers (CASPs) offering services involving EMTs. The EBA advises national competent authorities (NCAs) to treat the transfer of EMTs by CASPs as a payment service under PSD2, while also recommending a transition period for CASPs to obtain PSD2 authorisation by 1 March 2026. The Opinion also proposes legislative suggestions to the EU institutions to resolve the overlap in the long term.

Key Takeaways:

• The EBA recommends that NCAs treat the transfer of EMTs by CASPs on behalf of clients as a payment service under PSD2.
• Custody and administration of EMTs, especially when custodial wallets allow transfers to and from third parties, should also fall under PSD2.
• However, exchanging crypto-assets for funds or for other crypto-assets, when done using proprietary capital, should not be considered a payment service.
• The EBA advises NCAs to streamline the authorisation process for CASPs, reusing information already submitted during the MiCA application and applying existing PSD2 exemptions with some exceptions.
• Capital requirements under MiCA and PSD2 should apply cumulatively to CASPs offering both crypto and payment services, with NCAs applying proportionality when assessing capital adequacy.
• The EBA stresses the importance of applying PSD2's consumer protection rules to EMT-related services, including transparency, fee disclosures, execution times, and liability for unauthorised transactions.
• Strong customer authentication and fraud reporting requirements must apply to EMT transactions, with a recommended grace period until 2 March 2026 before full enforcement.
• MiCA's safekeeping obligations are sufficient, and PSD2's safeguarding rules should not apply concurrently.
• Custodial wallets should not be subject to PSD2's open banking rules during the transition.

Statistics:

• 1 March 2026: Transition period for CASPs to obtain PSD2 authorisation for EMT-related services.
• 2 March 2026: End of the grace period for compliance with strong customer authentication and fraud reporting requirements.

Sources:

• Opinion on the interplay between PSD2 and MiCA.pdf, European Banking Authority, 2025.