The regulatory treatment of electronic money tokens (“EMTs”) has been one of the most complex interpretative questions arising from the entry into force of the Markets in Crypto-Assets Regulation (“MiCA”). While MiCA establishes a comprehensive framework for crypto-asset service providers (“CASPs”), certain EMT-related activities such as the execution of transfers, may simultaneously fall within the scope of the Payment Services Directive (“PSD2”).
This overlap created immediate uncertainty. Could CASPs be required to obtain dual authorisation one under MiCA and another as a Payment Institution (“PI”) or Electronic Money Institution (“EMI”) under PSD2?
To prevent market disruption, the European Banking Authority (“EBA”) issued a No-Action Letter (“NAL”) on 10 June 2025. The NAL introduced a nine-month transition period during which national competent authorities (“NCAs”) were advised not to immediately enforce PSD2 authorisation requirements for EMT-related services. The objective was twofold: preserve business continuity and avoid disproportionate dual licensing while legislative alignment was considered.
However, the NAL did not remove the underlying legal overlap. It merely deferred enforcement. The transition period expires on 2 March 2026.
The February 2026 Opinion: Supervisory Priorities After 2 March 2026
On 12 February 2026, the EBA issued its follow-up Opinion, signalling that the period of supervisory tolerance is drawing to a close. The message to NCAs is clear: once 2 March 2026 arrives, transitional flexibility gives way to structured enforcement.
In the interim, the market has already responded. Since the issuance of the 2025 NAL, more than 100 CASPs have approached national authorities seeking authorisation as PIs or EMIs. The level of engagement demonstrates how significant the MiCA–PSD2 intersection has become for the European crypto sector.
As the deadline approaches, CASPs will no longer operate in a regulatory grey zone. Instead, they will effectively fall into one of three supervisory pathways.
The Three Post-Transition Scenarios
1. Authorised (or Partnered) CASPs
Where a CASP has already secured authorisation as a PI or EMI, or operates in partnership with an authorised payment service provider (“PSP”), EMT transactions may continue, but strictly within the limits of that authorisation.
MiCA authorisation alone is not sufficient where payment functionality is involved. Where EMTs operate as payment instruments, PSD2 compliance must complement the MiCA
2. Applications Pending but Not Yet Approved
For CASPs that have submitted an application but have not yet received approval, the EBA adopts a calibrated and pragmatic approach.
NCAs may allow temporary continuation of EMT-related payment activities only if four cumulative conditions are satisfied:
• The application is complete in accordance with Article 5 PSD2 and the EBA Guidelines on the authorisation of payment institutions (EBA-GL-2017-09)
• The applicant responses to queries from the NCA in an “exhaustive, transparent and expeditious manner”;
• The NCA has verified that the applicant has not been subject to any supervisory action and has not breached MiCA, national VASP rules or other legislation (such as AML requirements) that would be material to a PSD2 authorisation.
• Based on its preliminary assessment the NCA has reasonable grounds to expect that authorisation will be granted within a very short timeframe.
However, this does not amount to an extension of the grace period. Where continuation is permitted, it is subject to strict limitations:
• Marketing of EMT services that qualify as payment services must cease; and
• No new clients may be onboarded for those services.
The framework therefore permits operational continuity, but explicitly prohibits any form of commercial expansion.
3. No Application or Failure to Meet Conditions
If a CASP does not submit a PSD2 application or is unable to satisfy the necessary authorisation criteria, NCAs are expected to instruct it to terminate any EMT‑related activities that constitute payment services by 2 March 2026. This includes ensuring that clients are offboarded in an orderly manner.
After that date, any regulatory uncertainty effectively comes to an end. The transitional accommodation period closes, and active supervisory enforcement becomes the standard approach
Wallet Transfers as Payment Services: A Significant Supervisory Signal
One of the most consequential elements of the Opinion concerns wallet-based services. Even when EMT movements are framed as simple internal ledger updates or described purely as custody operations, this does not remove them from the scope of PSD2. The EBA’s position is that the execution of EMT transfers may amount to a regulated payment service, irrespective of whether the underlying custodial wallet qualifies as a “payment account”.
Notably, transfers carried out by users between their own wallets (first‑party transfers), may also constitute payment transactions. Taken together, these clarifications demonstrate that wallet‑based EMT activity can place a CASP within the remit of EU payment regulation whenever it executes transfers on behalf of clients.
A Structural Shift in Regulatory Approach
The Opinion does more than manage the expiration of a transitional regime. It reinforces a broader regulatory principle: if EMTs are designed to function like money, they must be regulated like money.
The EBA’s analysis marks a structural shift from interpretative discretion to structured supervisory enforcement, signalling that crypto services with payment‑like characteristics will be held to the same regulatory standards that govern the broader EU payments framework. With the March deadline drawing near, firms relying on EMT‑based business models must reassess whether their operations trigger payment‑service requirements and ensure their authorisation strategy reflects that assessment.
From 2 March 2026, the regulatory ambiguity ends: any CASP executing EMT transfers without appropriate PSD2 authorisation will not be operating in a grey zone, but in clear breach of the EU payments framework, with all the supervisory consequences that entails.
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