EBA Issues Supervisory Priorities as PSD2–MiCA Transition Period for EMT Activities Ends

In accordance with a 12 February European Banking Authority opinion, as of 2 March 2026 electronic money token transactions that qualify as payment services must be fully compliant with PSD2, otherwise they will be subject to business cessation measures and customer offboarding.

On 12 February, the European Banking Authority published an Opinion specifying the supervisory priorities applicable as of 2 March, the end date of the transitional period provided for in the June 2025 No Action Letter relating to the relationship between Directive (EU) 2015/2366 on payment services (PSD2) and Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA).

The Opinion marks the end of the regulatory tolerance phase granted to certain cryptoasset service providers (CASPs) carrying out transactions in electronic money tokens (EMTs) such as USDC.

BACKGROUND: THE NO ACTION LETTER OF JUNE 2025

In June, the EBA adopted a No Action Letter to avoid immediate dual authorization (CASP and PSP) for CASPs executing transactions in EMT.

During a nine-month transition period, national competent authorities (NCAs) were invited to defer the PSD2 authorization requirement. For more information, see our LawFlash on the June No Action Letter.

This flexibility phase is now coming to an end.

THE THREE SCENARIOS IDENTIFIED BY THE EBA

The EBA distinguishes between three possible scenarios for a CASP wishing to pursue EMT transactions that qualify as payment services.

Scenario #1: CASP already authorized as a PI/EMI or partner of a licensed PSP

In this scenario, a CASP may continue its activities within the scope covered by:

• its own payment institution or electronic money institution license; or
• the license of its PSP partner (agent or outsourcing model)

Point to note: The AMF and ACPR will assess whether the PSP partner itself requires an authorisation under MiCA.

Scenario #2: CASP that has submitted a PSP application but not yet been licensed

For CASPs with a PSP application currently under review by the ACPR, the NCAs may authorize the continuation of activities during the review process provided that:

• the application is complete (in accordance with Article 5 of PSD2 and the EBA guidelines);
• the applicant cooperates fully and promptly;
• no material breaches of the regulations are found; and
• the authority considers that authorization is likely to be granted within a sufficiently short period of time.

If this tolerance is granted, the CASP must still:

• cease all marketing activities related to EMTs that qualify as payment services; and
• not onboard new customers for these services.

This option remains discretionary and temporary.

Scenario #3: CASP without an application or not meeting the requirements

As of 2 March, the AMF would require the CASP to cease providing EMT services that qualify as payment services and offboard the clients concerned.

BROAD INTERPRETATION OF THE NOTION OF ‘PAYMENT SERVICE’

The EBA confirms a broad interpretation already expressed in the NAL: executing transfers in EMT (and custody) may constitute a payment service regardless of whether wallets are classified as payment accounts.

The following are likely to fall within the scope of PSD2:

• The storage of EMTs combined with the execution of transfers
• Internal transfers (first-party transfers)
• Pay-out transactions
• Transfers between accounts held by the same user
• Certain custodial or omnibus wallet models

PRACTICAL IMPLICATIONS FOR CASPS

CASPs operating EMT flows should consider the following actions:

• Assess which EMT transactions fall under the “execution of payment transactions” (Annex I PSD2)
• Assess without delay the advisability of preparing a PSP file or setting up a PSP agent system in partnership with a PSP whose authorization allows them to carry out payment transactions on EMT
• Consider discontinuing all marketing activities for services involving EMTs (lending, margin, listing of new EMTs, etc.)
• Prepare for the continuity of its services according to the choice made with regard to the above scenarios

OUR ANALYSIS

This Opinion represents a regulatory turning point. CASPs operating EMT flows must now assume that any activity functionally similar to a payment service will be treated as such.

A strategic review of your EMT flows appears essential in the coming days/weeks.

Our teams are available to assist you in analyzing and implementing the requirements resulting from this Opinion.