MiCA and PSD2: Do Crypto-Asset Service Providers Need Dual Licensing for EMT Services?
The European Banking Authority (EBA) has issued a No Action Letter addressing the intersection between the Revised Payment Services Directive (PSD2) and the Markets in Crypto-Assets Regulation (MiCAR). The letter reaffirms a previously recognized position: certain services involving Electronic Money Tokens (EMTs) – such as transfers and custody – may fall within the regulatory scope of PSD2. As a result, crypto-asset service providers (CASPs) may be required to hold both MiCA and PSD2 authorisations, or alternatively, establish partnerships with licensed payment service providers (PSPs).
While many CASPs maintain that offering crypto-asset exchange services or facilitating the purchase of EMT-denominated assets does not in itself trigger a dual licensing requirement, further operational elements might. For instance, if a CASP enables users to withdraw EMTs or transfer them between wallets – including so-called first-party transfers (i.e., between wallets controlled by the same client) – such features could be interpreted as payment services under PSD2.
Therefore, it is strongly recommended that CASPs conduct a comprehensive assessment of the services provided to clients. This evaluation should determine whether PSD2 licensing is necessary to ensure ongoing regulatory compliance and to safeguard the continuity of operations. operations.
Read all about the dual licensing. Article by NOEWE Legal & Tax Services:
- Kristina Jungevičienė, Managing Associate,
- Monika Zavackaitė, Associate.
1- EBA confirms dual licensing may apply for EMT-related services
The European Banking Authority (EBA) has published a No Action Letter on the interplay between PSD2 and MiCA.
No Action Letter confirms what had already been raised before – certain services involving Electronic Money Tokens (EMTs), such as transfers or custody may fall under PSD2.
This means that crypto-asset service providers (CASPs) may need both MiCA and PSD2 licensing or a partnership with a licensed PSP.
2- When is PSD2 licensing or a PSP partnership needed?
If a CASP provides any of the following EMT-related services, PSD2 would apply:
- transferring EMTs on behalf of clients – to third-parties or as first-party transfers (i.e. transfers between wallets held by the same user (including different wallets/accounts serviced by the same service provider));
- custody and administration of EMTs.
3- What services are not considered payment services under PSD2?
PSD2 licensing is not required when a CASP:
- provides crypto-to-fiat exchange services;
- provides crypto-to-crypto exchange services;
- intermediates the purchase of crypto-assets with EMTs.
However, if your platform allows clients to withdraw exchanged EMTs or transfer them between wallets, including first-party transfers, these features may qualify as payment services under PSD2. Therefore, a full assessment of the services offered by your company to the clients is recommended to determine whether additional PSD2 license is required to ensure compliance and continuity of the business.
4- Transition period runs until 1 March 2026
CASPs may continue offering EMT-related services that fall under PSD2 without a licence or PSP partnership until 1 March 2026. After this date, those services may only be provided if:
- CASP holds a PSD2 licence, or
- operates under a formal agreement with an authorised PSP.
5- What should CASPs do to prepare?
If your company plans to offer EMT-related services, it is recommended to prepare the PSD2 application together with the MiCA application. Although the applications can be submitted in any order, submitting them in parallel would likely help to prevent licensing gaps and to ensure business continuity after 1 March 2026.
