Background
Under MiCA, e-money tokens, the crypto-assets that reference a single official currency, are deemed to be electronic money. In June 2025 the European Banking Authority published a no action letter on the interplay between the second Payment Services Directive (PSD2) and MiCA. It concluded that some crypto-asset services involving e-money tokens are also payment services, and that a crypto-asset service provider providing them requires authorisation under PSD2 in addition to its MiCA authorisation.
The services affected
The EBA identified two services:
- transfer services for crypto-assets, where they involve e-money tokens and are carried out on behalf of clients;
- custody and administration of e-money tokens, where the custodial wallet is held in the name of one or more clients and allows tokens to be sent to and received from third parties. The EBA treats such a wallet as a payment account.
The EBA advised national authorities not to treat the exchange of crypto-assets for funds or for other crypto-assets as payment services, or the intermediation of purchases of crypto-assets with e-money tokens.
The end of the transition period
The no action letter allowed firms until 2 March 2026 to obtain authorisation under PSD2. In February 2026 the EBA advised national authorities on the position after that date: crypto-asset service providers that do not meet the conditions set out in its opinion should be required to stop providing the e-money token services concerned. It also asked authorities to prioritise these applications and to use a streamlined process that draws on the information already provided for MiCA authorisation.
What firms should do
A crypto-asset service provider that transfers e-money tokens for clients, or holds them in custodial wallets, should confirm whether its services fall within the EBA's analysis. Where they do, the firm requires authorisation as a payment institution or an electronic money institution in its home member state. Where a group already holds such an authorisation, it may be possible to provide the services through that entity. The business model, safeguarding arrangements and governance should be consistent across both authorisations.
How we can help
We prepare applications for payment and electronic money institutions and for crypto-asset service providers across the EU. See payment institutions and EMIs and crypto on- and off-ramps, or speak to us.
Sources
European Banking Authority, No action letter on the interplay between PSD2 and MiCA, June 2025; advice to national authorities on the end of the transition period, February 2026. Checked 27 September 2026.