End of transition period under the EBA’s no action letter on interplay between PSD2 and MiCA

In this newsflash we discuss the end of the transition period under the EBA’s No Action Letter (NAL) regarding the interplay between PSD2 and MiCA for crypto-asset service providers (CASPs) that transact electronic money tokens (EMTs). It outlines the EBA’s most recent guidance dated 12 February 2026 to national competent authorities (NCAs) on supervisory priorities and the scenarios for CASPs at the end of the transition period i.e. 1 March 2026. Key dates and regulatory expectations are highlighted, along with practical implications for CASPs operating EMT payment services.

As a reminder, the EBA’s NAL¹ published on 10 June 2025 provided guidance to national competent authorities (NCAs) on managing the interplay between PSD2² and MiCA³ for crypto-asset service providers (CASPs) transacting in electronic money tokens (EMTs). In some cases, dual authorisation may be required as CASPs under MiCA and as payment institutions under PSD2. Our previous newsflash detailed the EBA’s NAL, noting that the EBA recommended that NCAs to grant affected CASPs a transition period until 1 March 2026 before PSD2 authorisation is required. After 1 March 2026, CASPs providing EMT services that qualify as payment services should, in principle, require authorisation under PSD2 (or PSD3).

Against this backdrop, on 12 February 2026, the EBA issued a further opinion clarifying how NCAs should proceed when the transition period ends i.e. as from 2 March 2026. In this context, the EBA outlined three scenarios:

Scenario 1: A CASP subject to dual licence requirements has already obtained authorisation as a payment service provider (PSP) or has partnered with an authorised PSP.

If the CASP is authorised as a PSP or has partnered with an authorised PSP, it may continue its activities in line with its PSP authorisation or the authorisation of the partner PSP. In the latter scenario, the EBA notes, however, that NCAs should assess whether the partner PSP requires MiCA authorisation under Article 59 of MiCA.

Scenario 2: A CASP subject to dual licence requirements has applied for authorisation as a PSP, but the process is still ongoing.

If the CASP has applied for authorisation but has not yet received it, the EBA advises NCAs to allow continued operations if specific conditions are met: a complete application has been submitted, the CASP is responsive during the process, there are no supervisory or compliance breaches, and there are reasonable grounds to expect the applications’ approval within a very short timeframe. Under this scenario, additional restrictions apply, including the requirement to cease marketing activities related to services with EMTs that qualify as payment services and to stop onboarding new clients until authorisation is granted. These restrictions do not apply where national laws provide for a MiCA transitional regime applicable until 1 July 2026 at the latest.

Scenario 3: A CASP subject to dual licence requirements has not started the authorisation process to obtain the PSP licence.

If no application has been made or the application submitted fails to meet the conditions specified under Scenario 2, the CASP must cease EMT payment services and offboard clients as of 2 March 2026.

Qualification of EMT transfers under PSD2

The EBA clarifies that executing transfers involving EMTs may qualify as a payment service, regardless of whether the custodial wallets offered by the CASP qualify as payment accounts. For example, where a CASP provides custody and administration of EMTs and executes transfers of EMTs on behalf of clients, including transfers to the same client as part of the pay-out leg of custody, such transfers may themselves constitute payment transactions requiring authorisation under PSD2, irrespective of whether the custodial wallet qualifies as a payment account.

Next steps

The entities concerned should review their authorisation status and ensure compliance with the EBA’s guidance as the transition period ends. CASPs should prepare for supervisory scrutiny and be ready to meet the requirements for dual authorisation under MiCA and PSD2 (or PSD3), including any restrictions or obligations outlined in the EBA’s opinion.