What is the Context of Regulatory Overlap?

The discussion surrounding Regulatory Overlap is a persistent challenge in the digital asset industry, impeding innovation and market clarity due to the fragmented and evolving nature of global regulations. A key debate involves establishing clear jurisdictional boundaries and harmonizing regulatory approaches to provide greater certainty for market participants. Future developments are focused on international cooperation among regulators and the creation of bespoke regulatory frameworks specifically tailored to the unique characteristics of digital assets.

Regulatory Overlap

Definition

Regulatory Overlap occurs when multiple distinct regulatory frameworks or authorities apply simultaneously to the same activity, product, or entity. In the digital asset sector, this situation frequently arises because crypto assets and services often possess characteristics that fit definitions across various traditional regulatory categories, such as securities, commodities, or payment instruments. This creates complexities for businesses, leading to uncertainty regarding compliance obligations and potential conflicting requirements across different jurisdictions. Navigating such overlaps demands careful legal analysis and strategic compliance planning.

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∞PSD2 Application

∞EU Financial Law

∞Cross-Border Payments

EBA Confirms MiCA and PSD2 Dual Licensing for EU Stablecoin Services

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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∞Regulatory Overlap

∞Markets in Crypto-Assets

∞Financial Stability

European Banking Authority Mandates Dual Licensing for Stablecoin Services

The EBA's MiCA-PSD2 overlap clarification imposes dual regulatory compliance, structurally doubling capital requirements for EU e-money token issuers.

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∞Regulatory Overlap

∞Compliance Burden

∞EU Jurisdiction

EBA Confirms MiCA Stablecoin Activities Require Dual Payment Services Licensing

The EBA's dual licensing mandate for EMT services undermines MiCA's single-passport goal, creating an urgent, systemic compliance friction point.

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∞Capital Requirements

∞Payment Services

∞EU Framework

European Banking Authority Confirms Stablecoin Dual Licensing under MiCA and PSD2

Stablecoin issuers must now architect compliance for dual MiCA/PSD2 licensing by March 2026, significantly increasing capital and operational costs across the EU.

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∞Financial Stability

∞CASP Authorization

∞Systemic Risk

European Banking Authority Confirms MiCA PSD2 Stablecoin Dual Licensing Mandate

The MiCA-PSD2 regulatory overlap mandates dual licensing for e-money token services, fundamentally increasing capital and compliance burdens by March 2026.