Briefing
The European Banking Authority (EBA) has confirmed a critical regulatory overlap → providers of e-money token (EMT) custody and transfer services must comply with both the Markets in Crypto-Assets Regulation (MiCA) and the Payment Services Directive (PSD2). This mandates dual licensing for a single business activity, effectively doubling compliance and capital requirements for stablecoin issuers across the European Union. The immediate strategic imperative is the March 2, 2026, deadline, marking the end of the EBA’s temporary “No Action Letter” transition period.
Context
Prior to this clarification, the industry operated under the assumption that MiCA, designed as a comprehensive, harmonizing framework, would supersede or fully integrate existing payment services requirements for stablecoin activities. The prevailing challenge was the legal ambiguity surrounding whether a MiCA-licensed Crypto-Asset Service Provider (CASP) could passport EMT services across the EU without also securing a separate Payment Institution (PI) license under PSD2. This uncertainty created a systemic risk of inconsistent national enforcement and fragmented market access.
Analysis
The EBA’s guidance fundamentally alters the operational architecture for stablecoin firms. Compliance frameworks must now integrate two distinct regulatory regimes, necessitating separate governance structures, audit trails, and reporting modules. This dual requirement escalates minimum capital thresholds → potentially combining MiCA’s €125,000 base with PSD2’s separate requirements → and introduces redundant oversight. The chain of effect begins with increased compliance cost, leading to potential market consolidation and a strategic preference for non-EMT stablecoin models, or a flight of euro-backed stablecoin innovation to jurisdictions with more unified regulatory paths.
Parameters
- Compliance Deadline → March 2, 2026 (The final date the EBA’s No Action Letter transition period ends)
- Affected Entities → E-money Token Providers (Issuers and CASPs offering custody/transfer)
- Regulatory Overlap → Markets in Crypto-Assets Regulation (MiCA) and Payment Services Directive (PSD2)
- Minimum Capital Impact → Firms face combined capital requirements, potentially exceeding €250,000 (MiCA’s €125,000 + PSD2’s requirements)
Outlook
The immediate focus shifts to the European Commission, which must now address this systemic regulatory redundancy to preserve MiCA’s goal of a single market. Industry advocacy will intensify, pushing for legislative amendments or a revised EBA position before the March 2026 deadline. The second-order effect is a precedent-setting challenge to the EU’s “single rulebook” principle, potentially encouraging a “race to the bottom” in national licensing or driving euro-stablecoin development to more accommodating jurisdictions outside the EU bloc.
Verdict
The EBA’s dual licensing confirmation represents a significant compliance failure in MiCA’s design, imposing unnecessary regulatory friction that will inhibit the growth of legitimate euro-denominated stablecoin services.
