EBA clarifies PSD2 vs MiCA rules – no extra license needed for EMT custody, but confirming compliance with regulations. Until 1 March 2026, national competent authorities (NCA) are advised not to require a separate PSD2 license from Crypto-Asset Service Providers (CASP) if they only custody or transfer e-money tokens, although these operations are still deemed payment services. At the same time, the exchange of EMT or other crypto-assets for fiat or other tokens is treated as a trading activity to which PSD2 does not apply.
What Exact Balance Between Compliance and Regulation Does the EBA Propose
Today, the European Banking Authority released a potentially crucial publication, specifically an Opinion issued as a No Action letter. It explains in detail that legal uncertainty must be removed following the entry into force of MiCA, while PSD2 simultaneously applies to operations with e-money tokens. The EBA proposes temporarily easing the requirements for CASP to avoid double licensing while preserving the fundamental principles of consumer protection and the EU’s technological neutrality.
More precisely, over the next two to three years, national regulators must treat the transfer of EMTs and their custody as payment services under PSD2, even when the operations are carried out “on behalf of the client.” While EBA advises using simplified authorization procedures: when applying for a payment license, a CASP may reuse information already submitted under MiCA procedures. In the EBA’s view, this should minimize administrative burden and avoid creating blockers for market development.
At the same time, regulators receive a list of PSD2 points whose supervision can be considered a low priority until 1 March 2026:
- safeguarding of client funds
- fee disclosure
- single identifier (IBAN equivalent)
- open banking interfaces
By contrast, access to a custodial wallet and the initiation of EMT transfers must already be built on the principles of strong customer authentication, although the EBA recommends that actual oversight of SCA and fraud reporting be strengthened only after the transition window closes. In the EBA’s opinion, this balance gives the industry time to adapt its infrastructure without jeopardizing the basic security of settlements.
The EBA’s long-term goal is to create a unified, more efficient system and eliminate the need for double authorization. To this end, the EBA proposes certain adjustments to MiCA – embedding provisions of the forthcoming PSD3/PSR on fee transparency, SCA, fraud reporting, own-funds calculation, and consumer protection. In that case, a CASP working with EMT would remain under the single MiCA framework yet would still have to comply with payment standards.
The EBA has also prepared for the possibility that this option proves unfeasible and offers an alternative: PSD3/PSR should explicitly exclude an additional authorization for CASP while simultaneously stating which payment-regulation requirements nevertheless apply to EMT operations.
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Conclusion
A potentially positive initiative aimed at transparency, regulatory efficiency, and the unhindered development of markets. Let’s hope that the EU bureaucracy doesn’t prolong the choice between these options for too long.
Actually, EBA also emphasizes that a scenario in which EMTs do not fall under PSD3/PSR and MiCA remains without enhancements threatens unequal competitive conditions, regulatory-arbitrage risk, and reduced user confidence in digital payments. Therefore, the EBA clearly insists that legislators choose between two fully developed roadmaps and not leave the status quo in place.
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