On the 10th of June 2025, the European Banking Authority (the “EBA”) published a No Action letter advising the European Union (“EU”) Commission, EU Council and EU Parliament to avoid dual authorisation under two EU legislative regimes.
The letter, requested by the EU Commission, addresses the complex interplay between Markets in Crypto Assets Regulation (“MiCA”) and the Payment Services Directive (“PSD 2”), particularly concerning Crypto Assets Services Providers (“CASPs”) dealing with Electronic Money Tokens (“EMTs”).
For an interim period, the EBA is advising National Competent Authorities (“NCAs”) to consider the transfer, custody and administration of EMTs as payment services under PSD 2, requiring streamlined authorisation by March 2026. However, exchange of crypto-assets for funds or other crypto assets are explicitly not considered payment services.
The EBA has also recommended long-term legislative amendments to MiCA within the upcoming PSD3 and the Payment Services Regulation to ensure consistent regulation and consumer protection without stifling innovation.
The full letter can be accessed through this link.
