The European Commission has recently addressed the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), highlighting the challenges in managing the dual regulation of Electronic Money Tokens (EMTs) under both MiCAR (Markets in Crypto-Assets Regulation) and PSD2 (Payment Services Directive 2).
🔍 Key Points:
· Dual regulation for EMTs complicates compliance for Crypto-Asset Service Providers (CASPs).
· The European Commission calls for a “No action letter” with regards to the enforcement requirements on authorisation in PSD2 as regards services with EMTs provided by CASPs, under certain conditions, to ease regulatory burdens of CASPs during the transition to PSD3.
· The goal is to ensure regulatory clarity, minimize operational complexity, and maintain consumer protection.
· As the crypto and payments landscape evolves, staying ahead of regulatory changes is crucial for businesses in the sector.
💼 For CASPs and financial services providers – this update brings much-needed initiative as they navigate the regulatory landscape in the EU.
💬 Stay informed, stay compliant! If you wish to discuss how this impacts your business contact us at lawfirm@dalir.co.uk
