Navigating Dual Regulation: EMTs Under PSD2 And MICA

On 10 December 2024, in a letter to the European Banking Authority ("EBA") and the European Securities and Markets Authority ("ESMA"), the EU Commission raised certain concerns regarding potential overlap between the second Payment Services Directive ("PSD2)" and the Markets in Crypto-Assets Regulation ("MICA") particularly in the case of services relating to Electronic Money Tokens ("EMTs"). The Commission invited the EBA and ESMA to explore the possibility of issuing an opinion under Article 9c of the EU Regulation establishing the EBA (Regulation (EU) No 1093/2010). These opinions are commonly referred to as "no action letters" and are public statements indicating that the EBA does not intend to recommend enforcement action on specific regulatory issues and advise on whether new legislation or guidelines are needed to address those issues.