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Financial services

European Banking Authority Offers Regulatory Relief to Crypto-Asset Service Providers

Strategic Insights

— 1 min read

The European Banking Authority (EBA) has issued a No Action letter to provide regulatory relief to crypto-asset service providers (CASPs) regarding the regulatory overlap between the Payment Services Directive (PSD2) and the Markets in Crypto-Assets Regulation (MiCA) concerning electronic money tokens (EMTs). The letter aims to avoid unnecessary dual authorisations and provide a proportionate and coherent regulatory approach during the transition period.

Key Takeaways:

  • 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, and CASPs must still comply with other PSD2 provisions, such as strong customer authentication (SCA) for accessing custodial wallets and initiating EMT transfers.
  • The EBA considers dual licensing burdensome and unnecessary for CASPs already authorised under MiCA, and advises that most EMT-related transactions should remain within the MiCA framework alone during the transition period.
  • The EBA recommends amending MiCA to incorporate or reference relevant PSD2 provisions for EMT-related services, ensuring adequate consumer protection and payment security.
  • The EBA also recommends adjusting PSD3/PSR to include applicable standards for CASPs without requiring them to obtain a second authorisation.
  • 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.

Statistics:

  • 2 March 2026: Date when authorisation requirements for CASPs will apply.
  • 10th of June 2025: Date when the EBA issued the No Action letter to CASPs.
  • Until 2 March 2026: Transition period during which CASPs will not be subject to enforcement of selected PSD2 provisions.

Sources:

  • European Banking Authority (EBA). (2025). No Action letter addressing the regulatory overlap between PSD2 and MiCA concerning EMTs.

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