1. PAYMENTS

1.1 Publication of the European Union (Requirements for Credit Transfers and Direct Debits in Euro) (Amendment) Regulations 2023

On 24 May 2023, the Minister for Finance published the European Union (Requirements for Credit Transfers and Direct Debits in Euro) (Amendment) Regulations 2023 [S.I. No. 253 of 2023] (Amending Regulations). The Amending Regulation amend the existing European Union (Requirements for Credit Transfers and Direct Debits in Euro) Regulations 2013 (Principal Regulations) which were published to give further effect to Regulation 260/2012/EU (Single Euro Payments Regulation or SEPA Regulation).

The Single Euro Payments Area (SEPA) is a mechanism that facilitates the standardisation of electronic payments denominated in euro across Europe. Under SEPA, all bank accounts must be identified by an International Bank Account Number (IBAN) and a Bank Identifier Code (BIC). The Amending Regulations make provision to confer additional powers to the Central Bank of Ireland (Central Bank) including the power to require payment service providers or other relevant persons to provide information, records, forecasts, plans, accounts or other documents so specified by the Central Bank to ensure compliance under the SEPA Regulation or the Principal Regulations.

The Amending Regulations came into force on 1 June 2023.

The Amending Regulations can be found here.

The Amending Regulations can be found here.

1.2 European Commission Proposal for PSD3 and PSR

On 28 June 2023, the European Commission issued Proposals for a Directive of the European Parliament and of the Council on payment services and electronic money services in the Internal Market amending Directive 98/26/EC and repealing Directives 2015/2366/EU and 2009/110/EC (PSD3) and for a Payment Services Regulation (PSR). The Proposals aim to bring payments and the wider financial sector into the digital age and will repeal Directive 2015/2366/EU (PSD2).

The new Proposals seek to improve consumer rights and allow consumer's increased information rights in relation to their data; to enable payment service providers (PSPs) to share fraud-related information between themselves and to utilise other measures to combat and mitigate payment fraud; to allow non-bank PSPs access to all EU payment systems, with appropriate safeguards, and securing those providers' rights to a bank account; to improve the functioning of open banking; and to strengthen harmonisation and enforcement through the implementation of the PSR.

The Proposals will also improve the availability of cash in shops and via ATMs, by allowing retailers to provide cash services to customers without requiring a purchase and clarifying the rules for independent ATM operators.

You can access a copy of the Proposal for PSD3 here with its related Annexes here and a copy of the Proposal for the PSR here with its related Annexes here. For more information on the Proposals, the European Commission's press release on the Proposals can be accessed here.

2. DIGITAL FINANCE & CRYPTO-ASSETS

2.1 MiCA and the Recast Funds Transfer Regulation publication in the Official Journal of the EU

On 9 June 2023, Regulation (EU) 2023/1114 on markets in crypto assets (MiCA) and Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets (the Recast Funds Transfer Regulation) were published in the Official Journal of the European Union.

The MiCA Regulation sets out a new supervisory regime for crypto-assets with a focus on issuers of certain crypto-assets (stablecoins) and crypto-asset service providers (CASPs). MiCA provides for the regulation and supervision of stablecoin issuers and for CASPS, requirements for public offers or admission to trading of crypto-assets, as well as a bespoke market abuse regime for crypto-assets admitted to trading.

The Recast Funds Transfer Regulation will introduce traceability of transactions in crypto-assets conducted through an intermediary or service provider and provides for the detection of suspicious transactions. The Recast Funds Transfer Regulation will see cryptoassets being brought in line with the traceability requirements for traditional financial products.

MiCA and the Recast Funds Transfer Regulation enter into force on 29 June 2023 and all provisions of the Regulations will become applicable by 30 December 2024.

The text of MiCA can be accessed here and the text of the Recast Funds Transfer Regulation can be accessed here.

To view the full article, click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.