EBA outlines supervisory priorities as CASP EMT transfer transition period concludes

On 12 February 2026, the European Banking Authority (EBA) published an opinion setting out supervisory priorities for national competent authorities (NCAs) as the transition period under the EBA's No Action letter (NAL) of 10 June 2025 on the interplay between PSD2 and MiCA comes to an end on 2 March 2026 (see Ashurst's previous update).

Key takeaways for CASPs

• Critical deadline: Crypto-asset service providers (CASPs) carrying out e-money tokens (EMT)-related payment services must either have obtained authorisation as a payment service provider (PSP)^,1 , partnered with an authorised PSP such that the PSP provides the relevant payment services, or have a pending application meeting specific conditions by 2 March 2026. Otherwise, they must cease these services and offboard affected clients.
• Operational restrictions: CASPs with pending applications that are permitted to continue carrying out EMT-related payment services must in principle cease marketing and stop onboarding new clients for such EMT-related payment services.
• First-party transfers in scope: The EBA confirms that first-party EMT transfers (e.g., transfers between a client's own wallets) still qualify as payment transactions requiring PSD2 authorisation.

Background

On 10 June 2025, the EBA issued a NAL advising NCAs on the interplay between PSD2 and MiCA, clarifying that only a subset of EMT-related crypto-asset services require PSD2 authorisation, providing a nine-month transition period, and recommending a streamlined authorisation process (see Ashurst's previous update).

Since then, more than 100 CASPs have approached NCAs or submitted applications for PSP authorisation. Given differing authorisation workloads across Member States, the EBA has now issued this Opinion to advise NCAs on prioritising their efforts as the transition period ends.

The three scenarios

Scenario 1: Authorised or partnered CASPs

CASPs that have obtained payment institution or e-money institution licence, or have partnered with an authorised PSP, may continue carrying out EMT-related payment services commensurate with their (or their partner's) license.

Where a CASP acts as an agent of a PSP, NCAs should assess whether the partner PSP requires MiCA authorisation.

Scenario 2: Pending applications

CASPs with pending payment institution or e-money institution applications may continue carrying out EMT-related payment services, provided:

• their application is complete;
• they respond to NCA queries promptly;
• they have no material regulatory issues under MiCA (or crypto-asset national regime) or other EU law (including AML rules); and
• the NCA expects approval within a very short time frame. For CASPs benefitting from national MiCA transition periods, this time frame must not extend beyond 1 July 2026 (or the date on which they are granted or refused their CASP licence).

Critically, CASPs in this scenario must cease marketing and stop onboarding new clients for EMT-related payment services while their application is pending. These restrictions do not apply to CASPs operating under national MiCA transition periods until 1 July 2026 (or the date on which they are granted or refused their CASP licence).

Scenario 3: No application or conditions not met

CASPs that have not applied, or that fail to meet the conditions under Scenario 2, must cease EMT-related payment services and offboard affected clients as of 2 March 2026.

Clarification on the scope of payment services

The EBA reiterates that the execution of transfers involving EMTs may qualify as a payment service under PSD2 (specifically, payment service 3 of Annex I of PSD2 – execution of payment transactions), regardless of whether the custodial wallets offered by the CASP qualify as payment accounts.

Importantly, the opinion specifies that first-party transfers of EMTs still qualify as payment transactions subject to PSD2 rules. For example, where a CASP provides custody and administration of EMTs and executes transfers on behalf of clients-including transfers to the same client as part of the pay-out leg of custody-such transfers may constitute payment transactions requiring an authorisation under PSD2.

What CASPs should do now?

As the 2 March 2026 deadline approaches, CASPs should take immediate steps to assess their regulatory position and plan accordingly:

1.  Assess current status. CASPs should urgently determine which of the three scenarios applies to them and, as the case may be, whether their pending applications meet all of the EBA's specified conditions.

2.  Prepare for restricted operations. CASPs with pending applications that meet EBA's specified conditions should implement internal processes to ensure compliance with the marketing and new client restrictions, including updating onboarding procedures, pausing advertising campaigns for EMT-related payment services, and training client-facing staff.

3. Engage proactively with NCAs. Given the significant authorisation workload across Member States, CASPs should maintain close dialogue with their NCAs under both PSD2 and MiCA, respond promptly to any queries, and seek informal guidance where needed on the expected authorisation timeline.

4. Plan for the worst case. CASPs that may fall into Scenario 3 should develop a contingency plan for ceasing EMT-related payment services and offboarding affected clients in an orderly manner, while continuing to provide other crypto-asset services under MiCA that do not trigger PSD2 requirements.

5. Monitor PSD3/PSR developments. The EBA has previously recommended that upcoming PSD3 and PSR clarify the requirements applicable to EMT transfer services and avoid duplicative authorisation requirements. CASPs should continue monitoring these legislative developments, as the final framework may provide welcome simplification of the current dual-regime challenges.

6. Consider partnership arrangements. CASPs that are unable to obtain PSD2 authorisation in time should explore whether partnering with an authorised PSP (for example, by acting as an agent) provides a viable path to continued operations, bearing in mind the need to assess whether the partner PSP itself requires authorisation under MiCA.

The coming weeks will be critical for CASPs operating in the EMT space. While the EBA's guidance provides some flexibility for firms with genuine pending applications, the message is clear: the window for operating without full regulatory authorisation is closing rapidly.