{"id":53686,"date":"2025-12-12T15:38:10","date_gmt":"2025-12-12T15:38:10","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&p=53686"},"modified":"2025-12-12T15:38:10","modified_gmt":"2025-12-12T15:38:10","slug":"from-forked-mandates-to-regulatory-harmony-how-the-ebas-no%e2%80%91action-letter-re%e2%80%91maps-the-micar-psd2-frontier-for-e%e2%80%91money%e2%80%91token-service-providers","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/from-forked-mandates-to-regulatory-harmony-how-the-ebas-no%e2%80%91action-letter-re%e2%80%91maps-the-micar-psd2-frontier-for-e%e2%80%91money%e2%80%91token-service-providers\/","title":{"rendered":"From Forked Mandates to Regulatory Harmony: How the EBA\u2019s No\u2011Action Letter Re\u2011maps the MiCAR\u2013PSD2 Frontier for E\u2011Money\u2011Token Service Providers"},"content":{"rendered":"

When the European Banking Authority (\u201cEBA\u201d) released its 34\u2011page No\u2011Action Letter on\u202f10\u202fJune\u202f2025, it did rather more than grant a temporary supervisory reprieve to crypto\u2011asset service providers (\u201cCASPs\u201d) transacting electronic\u2011money tokens (\u201cEMTs\u201d); it exposed, with almost surgical precision, the structural incongruities created by the parallel application of the Markets in\u202fCrypto\u2011Assets Regulation (\u201cMiCAR\u201d), the Second Electronic Money Directive (\u201cEMD2\u201d) and the Second Payment Services Directive (\u201cPSD2\u201d), thereby compelling practitioners, regulators and market participants alike to reassess the very fault\u2011lines along which token\u2011based payment activity is to be regulated in the near future, all while the forthcoming PSD3\/Payment\u2011Services Regulation (\u201cPSR\u201d) package is still being negotiated.<\/strong><\/p>\n

<\/p>\n

In a commentary, Minto and<\/strong>\u202f<\/strong>de<\/strong>\u202f<\/strong>Arruda (2025)<\/strong> describe the Letter as an \u201cextra\u2011legislative plaster\u201d that slows, but cannot heal, the widening gap between MiCAR\u2019s token\u2011specific regime and PSD2\u2019s technology\u2011neutral approach to payment services; yet they also acknowledge that, absent such forbearance, the immediate imposition of a dual\u2011licensing obligation on every EMT\u2011handling CASP would have risked choking innovation and fragmenting the Single Market before MiCAR had even celebrated its first birthday.<\/p>\n

This article seeks to distil the practical consequences of the unprecedented EBA intervention for firms at the intersection of crypto asset and payment services, while offering concrete, business\u2011oriented recommendations for navigating the interstitial period that will end on 2<\/strong>\u202f<\/strong>March<\/strong>\u202f<\/strong>2026<\/strong>.<\/p>\n

    \n
  1. The Regulatory \u201cTrilemma\u201d in a Nutshell<\/strong><\/li>\n<\/ol>\n
      \n
    • Tri\u2011layer exposure.<\/strong> An EMT is, by statutory law fiat (MiCAR\u202fArt\u202f48\u202f(2)), simultaneously a crypto\u2011asset, electronic money and \u201cfunds\u201d under PSD2; each status drags into play a separate licensing perimeter, prudential baseline and conduct rule\u2011set.<\/li>\n
    • Circular exclusions.<\/strong> MiCAR\u202fArt\u202f2\u202f(4)(c) excludes \u201cfunds\u201d from its scope unless they are EMTs, while PSD2 automatically reincorporates EMT activity as a payment service\u2014a drafting ouroboros that the EBA openly criticises.<\/li>\n
    • Capital duplication.<\/strong> The Letter points out the issue that initial\u2011capital and ongoing prudential own\u2011funds thresholds accrue cumulatively, yet prohibits double\u2011counting, thus raising the floor for hybrid business models.<\/li>\n<\/ul>\n
        \n
      1. What the No\u2011Action Letter Actually Does<\/strong><\/li>\n<\/ol>\n
          \n
        • Scope carve\u2011outs.<\/strong> Until 1<\/strong>\u202f<\/strong>March<\/strong>\u202f<\/strong>2026<\/strong>, NCAs are invited<\/em> not to enforce PSD2 authorisation requirements for (i) EMT transfers on behalf of clients, (ii) EMT custody\/administration, and (iii) execution of EMT\u2011denominated payment orders\u2014provided the CASP already holds (or is applying for) a MiCAR licence.<\/li>\n
        • Priority matrix.<\/strong> Key PSD2 cornerstones\u2014strong customer authentication (\u201cSCA\u201d) and fraud\u2011reporting\u2014remain non\u2011negotiable, whereas open\u2011banking interfaces, detailed fee\u2011disclosure and maximum\u2011execution\u2011time rules may be \u201cde\u2011prioritised\u201d.<\/li>\n
        • Transition pathway.<\/strong> CASPs are encouraged either to obtain a full payment\u2011institution (\u201cPI\u201d) licence through a streamlined dossier or to partner with a licensed PI; from 3<\/strong>\u202f<\/strong>March<\/strong>\u202f<\/strong>2026<\/strong> onward, operating without one of those arrangements becomes supervisory non\u2011compliance.<\/li>\n<\/ul>\n
            \n
          1. Liechtenstein\u2011Specific Touchpoints<\/strong><\/li>\n<\/ol>\n
              \n
            1. VT\u2011Dienstleister under Transition:<\/strong> Entities that carried forward their Token\u2011 and\u00a0VT\u2011Dienstleister<\/em> (national VASP) registrations into the MiCAR era can rely on Art\u202f143 MiCAR and the EBA\u2019s supervisory forbearance, but must still evidence proportional own funds and a formal risk\u2011management framework consistent with both TVTG and MiCAR Title\u202fV.<\/li>\n
            2. FMA Convergence Duty:<\/strong> Under Art\u202f5\u202f(5) FMAG, the Liechtenstein FMA is legally bound to align its supervisory tools with EU convergence instruments\u2014including EBA Opinions\u2014making a \u201cno\u2011action\u201d approach de\u202fjure persuasive rather than merely facultative, as it has not been implemented into the EEA acquis.<\/li>\n
            3. Prudential Budgeting:<\/strong> Given the cumulative application of MiCAR Annex\u202fIV and PSD2 Art\u202f7 thresholds, a Liechtenstein CASP upgrading to a de<\/em>\u202f<\/em>novo<\/em> PI licence should model a permanent minimum capital of at least EUR\u202f250,000 (class\u202f2 CASP + PIS), subject to upward adjustment where EMT volumes exceed model\u2011one own\u2011funds bands.<\/li>\n<\/ol>\n
                \n
              1. Strategic Options for Market Participants<\/strong><\/li>\n<\/ol>\n\n\n\n\n\n\n\n\n
                Timeline<\/strong><\/td>\nCompliance Lever<\/strong><\/td>\nPractical Action<\/strong><\/td>\nBusiness Upside<\/strong><\/td>\n<\/tr>\n<\/thead>\n
                Q3 2025 \u2013 Q1<\/strong>\u202f<\/strong>2026<\/strong><\/td>\nOptimise MiCAR dossier<\/strong><\/td>\nMap each EMT\u2011related workflow against MiCAR Annex\u202fI services; isolate payment\u2011service\u2011like elements; document SCA controls.<\/td>\nSustain operations without PSD2 licence while building supervisory goodwill.<\/td>\n<\/tr>\n
                Q3<\/strong>\u202f<\/strong>2025 \u2013 post-2026<\/strong><\/td>\nPI licence \u201clite\u201d<\/strong><\/td>\nLeverage Art\u202f62\u202f(4) MiCAR cross\u2011use of documentation; negotiate capital\u2011waiver adjustments under PSD2 Art\u202f9\u202f(3).<\/td>\nEarly mover advantage once PSD3\/PSR passport is live.<\/td>\n<\/tr>\n
                Q1<\/strong>\u202f<\/strong>2026<\/strong><\/td>\nStrategic partnership<\/strong><\/td>\nConclude white\u2011label agreement with an EU PI\/EMI for EMT transfers; embed waterfall SLA into smart\u2011contract logic.<\/td>\nFaster market entry; shared compliance cost.<\/td>\n<\/tr>\n
                Post\u20112026<\/strong><\/td>\nLicence consolidation<\/strong><\/td>\nMonitor PSD3 \u201cequivalence\u2011exemption\u201d debates; lobby for single\u2011licence solution via industry bodies.<\/td>\nReduced regulatory friction; capital efficiency.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                \u00a0<\/strong><\/p>\n

                \u00a0<\/strong><\/p>\n

                  \n
                1. Unresolved Questions (and How to Prepare)<\/strong><\/li>\n<\/ol>\n
                    \n
                  • Is a custodial wallet a \u201cpayment account\u201d?<\/strong> The EBA says \u201cyes, functionally,\u201d but leaves PAD obligations in limbo; firms should design APIs as if future open\u2011finance legislation will mandate access.<\/li>\n
                  • Can MiCAR own\u2011funds substitute PSD2 capital?<\/strong> Not today; however, draft Council text (13\u202fJune\u202f2025) contemplates risk\u2011weighted offsets\u2014monitor trilogue minutes.<\/li>\n
                  • What if EMT lending is bundled with payment functionality?<\/strong> Neither MiCAR nor PSD2 addresses this hybrid risk stack; bespoke legal structuring (e.g., secured loan tokens ring\u2011fenced from payment rails) remains advisable.<\/li>\n<\/ul>\n
                      \n
                    1. Conclusions for Decision\u2011Makers<\/strong><\/li>\n<\/ol>\n

                      The EBA\u2019s No\u2011Action Letter is, in effect, a 30 page spanning last minute sandbox or critics may argue band-aid to the new MiCAR legislation that buys legislators and supervisors time to craft a coherent, technology\u2011agnostic payments framework. While from a legislative perspective the No-Action Letter regime arguably was not intended for such purposes it brings fintech startups in the crypto asset and – payment sectors a time period \u2013 albeit short and an apparently arbitrarily chosen deadline of March 02, 2026 – to prepare and align accordingly; yet the price of that breathing space is proactive, board\u2011level strategic planning\u2014particularly in capital budgeting, SCA rollout and cross\u2011border licensing\u2014lest firms find themselves scrambling on 3<\/strong>\u202f<\/strong>March<\/strong>\u202f<\/strong>2026<\/strong>.<\/p>\n

                      Key Findings & Core Statements<\/strong><\/p>\n

                        \n
                      • The EBA No\u2011Action Letter<\/strong> suspends PSD2 authorisation enforcement for core EMT services until 2<\/strong>\u202f<\/strong>March<\/strong>\u202f<\/strong>2026<\/strong>.<\/li>\n
                      • MiCAR and PSD2 capital requirements accumulate<\/strong>; CASPs should budget for at least EUR\u202f250k permanent capital when adding payment services.<\/li>\n
                      • The Liechtenstein FMA is de facto legally incentivised to follow<\/strong> the EBA forbearance owing to FMAG Art\u202f5\u202f(5), providing local market stability.<\/li>\n
                      • Strategic options<\/strong> include early PI licensing, white\u2011label partnerships, or licence consolidation once PSD3\/PSR introduces an equivalence carve\u2011out.<\/li>\n
                      • Uncertainties<\/strong> linger around custodial\u2011wallet status, capital substitution, and EMT\u2011linked lending, warranting continued monitoring and agile legal structuring.<\/li>\n<\/ul>\n

                        For bespoke advice on how the No\u2011Action Letter and forthcoming PSD3\/PSR package affect your crypto asset and payment strategy, please contact the authors at Bergt<\/em>\u202f<\/em>Law, Vaduz.<\/em><\/p>\n

                        References <\/strong><\/p>\n

                          \n
                        • European Banking Authority. (2025). Opinion on the interplay between PSD2 and MiCA in relation to crypto\u2011asset service providers that transact electronic\u2011money tokens<\/em> (EBA\/Op\/2025\/08).<\/li>\n
                        • Minto,\u202f, & de\u202fArruda,\u202fT.\u202f(2025). Regulating<\/em>\u202f<\/em>e\u2011money tokens at the intersection of MiCAR and PSD2: Legal ambiguities and the<\/em>\u202f<\/em>EBA<\/em>\u2019<\/em>s no\u2011action letter.<\/em> EU Law\u202fLive, 4\u202fJuly\u202f2025.<\/li>\n<\/ul>\n

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