On 10 June 2025, the EBA published a No Action Letter1 addressing the relationship between the Payment Services Directive (PSD2)2 and the Markets in Crypto-Assets Regulation (MiCA)3. This letter focuses on crypto-asset service providers (CASPs) that transact in electronic money tokens (EMTs), which in some cases may require dual authorisation for CASPs under MiCA and as payment institutions under PSD2.
Article 48(2) of MiCA deems EMTs to be "electronic money." Likewise, Article 4(25) of PSD2 defines "funds" to include "electronic money." As a result, EMTs have a dual character: they are both crypto-assets under MiCA and electronic money/funds under PSD2. Consequently, the transfer of EMTs or related services may fall within the scope of payment services under PSD2.
The EBA recognises that applying both frameworks would impose unnecessary and disproportionate compliance burdens on CASPs, requiring dual authorisation under MiCA and PSD2 for the same EMT-related activities. The EBA maintains that a single financial activity should be governed by one legislative framework to reduce complexity for market participants and national competent authorities (NCAs). To address these issues, the EBA has advised EU institutions (the Commission, Council and Parliament) to use the ongoing legislative process for PSD3/PSR to amend MiCA. The EBA favours strengthening MiCA requirements for crypto-asset services involving EMTs that qualify as payment services, and has also provided advice to NCAs as to how to manage the interplay between PSD2 and MiCA during the transitional period before the new PSD3/PSR framework applies.
1. EBA's recommendations to NCAS
The EBA advises NCAs:
- To treat the transfer of EMTs by CASPs as a payment service
under PSD2 only in limited circumstances, such as:
- Transfers of EMTs on behalf of clients, including wallet-to-wallet transfers where the CASP acts for a client, regardless of the technology used (e.g. blockchain transactions involving EMTs rather than fiat);
- Custody and administration of EMTs, such as providing custodial wallets in the name of clients and enabling the sending and receiving of EMTs to and from third parties, which is considered the operation of a payment account under PSD2. - Not to require PSD2 authorisation for CASPs that merely intermediate the purchase of crypto-assets with EMTs or for exchange activities (crypto-to-fiat or crypto-to-crypto). The EBA clarifies that the "exchange of crypto-assets for funds" or "exchange of crypto-assets for other crypto-assets" as defined in MiCA, including intermediation of such purchases, does not constitute a payment service under PSD2 and should not require an authorisation under PSD2 (or PSD3).
- To grant applicants a transition period until 1 March 2026 before PSD2 authorisation is required. After 1 March 2026, with the application of PSD3/PSR, only CASPs providing EMT services that clearly qualify as payment services should require authorisation under PSD2 (or PSD3). In such cases, the process should be streamlined by reusing information from MiCA authorisations. The EBA's advice to NCAs applies to all legal entities that provide, or intend to provide, services related to EMTs that qualify as payment services, regardless of whether they already hold a CASP licence under MiCA, benefit from a national transitional regime under MiCA, or already hold a PSP licence under PSD2. For entities not yet authorised as CASPs under MiCA or as PSPs under PSD2 and considering applying for both, the EBA does not recommend any particular sequence for obtaining these authorisations.
- Once authorisation is granted, to deprioritise supervision and enforcement of certain PSD2 requirements (e.g. safeguarding requirements, fee disclosures, open banking requirements, etc.) for EMT transactions, while maintaining key protections such as strong customer authentication and fraud reporting.
2. Legislative recommendations
The EBA calls for legislative amendments to PSD3/PSR to ensure alignment. In the long term, the EBA recommends that EU legislators amend MiCA through the legislative process of the forthcoming PSD3/PSR to:
- Clarify that CASPs providing EMT-related services qualifying as payment services should be regulated under MiCA only, to avoid unnecessary dual authorisation and overlapping requirements, and to ensure a coherent regulatory framework.
- Ensure consistent consumer protection regardless of the underlying technology, thereby promoting technological neutrality so that users of such crypto-asset services are provided with a level of protection that is adequate and comparable to that of users of payment services.
3. Conclusion
The regulatory landscape governing the interaction between MiCA and PSD2 is evolving. The EBA's guidance provides transitional relief and a pragmatic approach, but further legal clarification is expected as the PSD3 and PSR legislative process progresses.
Staying informed about legislative developments and adapting compliance strategies will be essential as the EU moves towards a more harmonised and technology-neutral regime for crypto-asset services.
Footnotes
1. EBA/Op/2025/08, Opinion of the European Banking Authority on the interplay between Directive EU 2015/2366 (PSD2) and Regulation (EU) 2023/1114 (MiCA) in relation to crypto-asset service providers that transact electronic money tokens.
2. Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC.
3. Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937.
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