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ARTICLE · 17 JUNE 2025

EBA's No Action Letter On EMTs: A Regulatory Bridge

Camilleri Preziosi
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The European Banking Authority (EBA) has published a significant No Action letter addressing the complex overlap between the Payment Services Directive 2 (PSD2) and the Markets in Crypto-Assets Regulation...

MaltaTechnology
Andrew Caruana Scicluna
Andrew Caruana Scicluna
Pierluca Bencini
Pierluca Bencini
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The European Banking Authority (EBA) has published a significant No Action letter addressing the complex overlap between the Payment Services Directive 2 (PSD2) and the Markets in Crypto-Assets Regulation (MiCA) for electronic money tokens (EMTs). The fundamental challenge stems from EMTs' dual legal nature—simultaneously defined as "crypto-assets" under MiCA and as "funds" under PSD2—creating a problematic scenario where crypto-asset service providers (CASPs) must obtain two separate licences to operate legally, which the EBA considers "disproportionate" and "unnecessarily complex."

To address this regulatory friction, the EBA has established a transitional period until 2 March 2026, during which national competent authorities are advised to defer requiring PSD2 authorisation for specified EMT-related services. The guidance provides important clarity on which activities constitute payment services under PSD2—such as transferring EMTs on behalf of clients and

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