EBA clarifies supervisory expectations as No Action Letter transition period ends

The European banking Authority (“EBA”) has published a new opinion (EBA/OP/2026/01) (“Opinion”) outlining supervisory expectations as the transitional period under the EBA’s No Action Letter (EBA/Op/2025/08) (“NAL”) from 10 June 2025 on interplay between Directive (EU) 2015/2366 (“PSD2”) and EU regulation (EU) 2023/1114 on Markets in Crypto-Assets (“MiCAR”) comes to an end on 2 March 2026. The Opinion provides essential guidance for national competent authorities (“NCA”) and crypto-asset service providers (“CASP”) involved in transactions using electronic money tokens (“EMT”).  

Why the EBA issued the NAL? 

The NAL was issued to clarify the regulatory burden on CASPs conducting transactions in EMTs during the period before the upcoming Payment Services Regulation (“PSR”) and the third Payment Services Directive (“PSD3”) has come into effect. By issuing the NAL, the EBA allowed NCAs to treat only a limited set of EMT-related activities as payment services and to apply streamlined procedures that make maximum use of information that legal entities provide during their CASP authorisation process. The EBA’s advice meant that it would be less burdensome for CASPs to have dual authorisation for all types of EMT transactions. 

What is changing? 

After 2 March 2026, three scenarios may arise for CASPs. 

1. CASPs already authorised or operation through an authorised payment institution 

CASPs who obtained authorisation as payment institution (“PI”) or have partnered with another PI may continue offering EMT-related payment services without interruption. 

2. CASPs with a pending PI authorisation 

CASPs who have submitted a PSD2 application but not yet granted that may be allowed to continue given certain conditions: 

• The application has been duly submitted;
• The applicant entity actively engages in supervisory queries;
• The CASP has not breached MiCAR or national VASP rules (whichever is applicable depending on the national application of MiCAR grandfathering period), AML obligations etc.;
• The NCA has reasonable grounds to expect that the application will be approved shortly. 

In this scenario, the CASP shall cease all marketing activities related to EMT that qualify as a payment service and not provide such services to any new customers. 

3. CASPs without an application or failing to meet the conditions

CASPs that either fail to submit an application or that do not meet the conditions for continued operation must from 2 March 2026 cease providing EMT-related payment services and off-board existing customers engaging in such services. 

What EMT-related transactions qualify as payment services? 

The Opinion specifies that the execution of transfers involving EMTs qualify as a payment service regardless of whether a custodial wallet is offered by the CASP qualifies as payment accounts. 

What does it mean for CASPs? 

The Opinion signals tightening of the regime and paves the way into full interplay between MiCAR, PSD3 and PSR, where the latter, in accordance with the latest draft suggests authorisation requirements for certain EMT-related payment services. Following the Opinion, CASPs need to ensure the following: 

• Assess the EMT-related services provided by the CASP to establish whether these qualify as payment services;
• If that is the case, prepare and submit an application in accordance with PSD2. 

Given the upcoming deadline of 2 March 2026, we recommend taking action immediately.