PSD2 application refers to the practical implementation of the European Union’s Revised Payment Services Directive. This directive aims to modernize payment services, promote innovation, and enhance consumer protection across the EU by enabling new payment service providers. Its application mandates banks to provide third-party providers with access to customer account information, with customer consent, through secure application programming interfaces (APIs). This facilitates open banking and new financial services.
Context
The PSD2 application holds relevance for the digital asset space, particularly concerning the interaction between traditional financial systems and crypto services. Discussions often involve how crypto-asset service providers might leverage PSD2 to offer integrated services or how existing payment firms can incorporate crypto payments. Regulatory debates consider whether PSD2 principles could extend to certain crypto-related payment activities, bridging the gap between fiat and digital currencies.
The EBA's clarification mandates dual licensing for e-money token services, introducing significant operational friction and double capital requirements by March 2026.
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