EBA advises authorities on actions after transition period under No-Action Letter ends

The European Banking Authority (EBA) published an opinion advising national competent authorities (NCAs) on how to proceed once the transition period set in its No-Action Letter of June 2, 2025, ends on March 2, 2026.

The transition period allows crypto asset service providers (CASPs) nine months to continue transacting electronic money tokens (EMTs) that qualify as payment services while submitting applications for authorization under the Revised Payment Services Directive (PSD2).

The opinion outlines conditions under which NCAs may permit CASPs to continue providing EMTs after March 2, 2026, without holding a PSD2 license. NCAs are advised to require CASPs that do not meet these conditions to cease EMT services. They are also encouraged to cooperate with relevant authorities under the Markets in Crypto-Assets Regulation (MiCA) and other national bodies to ensure compliance.

This guidance follows the EBA’s No-Action Letter published on June 2, 2025, which clarified the interplay between PSD2 and MiCA regarding EMT transactions by CASPs. The letter permitted CASPs to continue services during a nine-month transition, requiring a second authorization under PSD2 only after this period. It also recommended a streamlined authorization process using information already provided under MiCA, reducing administrative burdens.

Since the publication, over 100 CASPs have approached authorities or submitted applications for payment service provider (PSP) authorization. As the transition period ends, the EBA advises NCAs on how to prioritize authorization efforts, considering varying application volumes across Member States.

Legal basis: EBA No-Action Letter and related guidance.