Navigating the MiCA–PSD2 Interplay for EMTs

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1. Introduction

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With the European Banking Authority's (EBA) formal Opinion (EBA/Op/2025/08) published in
June 2025, the regulatory interplay between the Markets in Crypto Assets Regulation (MiCA)
and the Second Payment Services Directive (PSD2) has entered a new and clarified phase.
This whitepaper examines how the EBA Opinion reshapes the compliance obligations for
crypto asset service providers (CASPs) involved with e-money tokens (EMTs).

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Under MiCA, EMTs are explicitly classified as electronic money (Article 48(2)), and thus are
treated as "funds" under PSD2. The EBA Opinion clarifies which activities with EMTs will be
considered payment services under PSD2, when dual licensing will be necessary, and when
exemptions or transitional arrangements apply. Just as importantly, it offers clarity on which
EMT-related services fall outside of PSD2's scope, thereby not requiring a dual license or
partnership.
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This whitepaper explores:
● What constitutes a payment service when dealing with EMTs
● Which services can and cannot be offered without triggering PSD2
● How the EBA proposes to reduce duplicative regulatory burdens
● What transitional relief CASPs may rely on until March 2026
● How partnerships with payment institutions like Januar can provide regulatory
certainty

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While this paper focuses on e-money tokens (EMTs), it's important to note that EMTs are not
the only crypto assets that may trigger PSD2 requirements. Certain services involving other
types of tokens, such as Bitcoin, Ether, or asset-referenced tokens, can also fall under PSD2
depending on whether the related transactions constitute a payment on behalf of users. For
a more comprehensive treatment of those use cases, see our companion whitepaper:
Navigating the MiCA–PSD2 Interplay for Non-EMTs.
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2. Regulatory Foundations and Overlap

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2.1 MiCA's EMT Framework

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MiCA regulates CASPs and introduces uniform licensing. EMTs are crypto assets that aim to
maintain a stable value by referencing a single fiat currency. Article 48(2) of MiCA equates
EMTs to electronic money. This classification triggers PSD2 obligations when EMTs are used
in activities resembling traditional payments.
Under Article 70(4), CASPs may offer related payment services themselves or through
partnerships, provided the provider is authorized under PSD2. However, not all activities
involving EMTs qualify as payment services. MiCA also clearly supports non-payment use
cases such as investment, custody, exchange, or issuance, some of which remain outside of
PSD2's scope.

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2.2 PSD2's Scope and Relevance

PSD2 covers traditional payment services such as:
● Executing payment transactions (transfers of funds)
● Operating payment accounts
● Issuing payment instruments
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Article 4(25) of PSD2 includes e-money in the definition of "funds." Consequently, EMTs via
MiCA are now clearly within PSD2's purview when used as a means of payment. However,
where EMTs are used for other purposes, such as trading, staking, or private transfers,
PSD2 may not apply.
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2.3 Rule Of Thumb
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Things that you, as a CASP, have legally been able to do with fiat in the past, you can do
with EMTs going forward.

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Please note that this is a very crude simplification, with several exemptions, special cases,
and things one might not normally consider.

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Like the fact that now issuing a wallet address that accepts EMTs is legally equal to issuing
an IBAN and that when a CASP handles fiat today there is a bank or PSP in the back same
as a PSP partner is required to handle EMTs. A lot of the ways you are handling fiat today
might be dependent on your bank/PSP partners license without you thinking about it.
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3. The EBA Opinion: Clarified Boundaries
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3.1 Activities Deemed Payment Services

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The EBA identifies several EMT-related activities by CASPs that fall within the scope of
payment services under PSD2. These include:

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● Custody and administration of EMTs via custodial wallets that allow the sending and
receiving of EMTs

● Providing transfer services for crypto-assets on behalf of clients where EMTs are
involved
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● Placing of crypto-assets, where EMTs are involved

● Exchange of crypto-assets for funds or other crypto assets, or execution of orders for
crypto-assets on behalf of clients, that involve movement of funds
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Notably, the EBA language can be interpreted to mean that both third-party and first-party
transfers, such as a user moving EMTs from a CASP wallet to their own self-custody wallet,
may qualify as payment transactions. This interpretation aligns with the view expressed in
the EBA Opinion (page 22) and confirmed in expert discussions: the decisive factor is not
the identity of the counterparty but rather the act of transferring EMTs out of a custodial
wallet, which resembles the execution of a payment transaction under PSD2.

This interpretation suggests that custodial wallets enabling any form of EMT inbound or
outbound transfer, whether to third parties or to the client’s own external address, could be
considered "payment accounts," triggering the need for PSD2 authorisation.
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While this may seem counterintuitive, especially for cases where no third party is involved, it
reflects the EBA’s current stance, and any changes may depend on future legislative
clarification during PSD3 or the trilogue process. In the meantime, CASPs offering such
wallet functionality should proceed on the assumption that PSD2 may apply, unless
structured to clearly prevent EMT transfers.
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3.2 Activities Excluded from PSD2

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The EBA Opinion also clarifies which EMT-related activities are not payment services and
thus do not require a PSD2 license:

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● Exchange of crypto assets for funds (EMTs) or other crypto assets using proprietary
capital
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● Intermediation of crypto purchases with EMTs for investment or trading purposes
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● Custody of EMTs in wallets that do not support transfers

● Execution of orders on behalf of clients when no funds movement is involved

● Reception and transmission of orders for crypto-assets

● Providing advice on crypto-assets

● Providing portfolio management on crypto-assets

● Operation of a trading platform for crypto-assets
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For example, if a CASP enables users to buy EMTs and hold them in a wallet without
enabling transfers to external parties, including the users own wallet, this service is within
the scope of MiCA alone. Similarly, peer-to-peer exchanges of EMTs for other crypto assets
on the CASP's platform are considered trading activity, not payment activity.
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3.3 Transitional Period to March 2026
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The EBA grants CASPs a transitional window until 1 March 2026. During this period:

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● CASPs can continue EMT-related services without PSD2 authorisation, provided they
are not acting as payment service providers

● CASPs offering EMT services that qualify as payment services should either seek
PSD2 authorisation or establish partnerships with authorised providers
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This transitional relief creates room for business model experimentation and allows time for
firms to determine if PSD2 applies to their service structure.

4. What You Can Do Without PSD2
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4.1 Permitted EMT Use Cases Under MiCA Only
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There are several service models involving EMTs that remain under the scope of MiCA and
do not require dual authorization:

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● Trading platforms that allow users to buy or sell EMTs using funds or crypto assets
without executing payments on their behalf
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● Non-custodial brokerage where the CASP sends or receives EMTs as part of a
crypto sell/purchase, but the customer never holds an EMT balance with the CASP
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● Non-custodial wallets where the CASP never controls or transfers EMTs on the
user’s behalf
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● Operation of a trading platform for crypto-assets including EMT pairs without
holding client funds
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● Portfolio management, investment advice, and order execution when EMTs
remain within the platform’s internal ecosystem
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4.2 Examples

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● A platform enables users to buy EMTs via bank or crypto transfer and stores them in
segregated non-transferable wallets: no PSD2 license required.
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● A broker offers an EMT/crypto trading pair but does not hold customer balances:
EMTs are immediately converted and delivered: no PSD2 license required.
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● A business pays freelancers in EMTs via smart contracts directly to user wallets,
without intermediation: no PSD2 license required.
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● A user transfers EMTs to another user via blockchain tools outside the CASP’s
custody: no CASP involvement, thus no licensing needed.
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These cases highlight the growing list of crypto use cases that do not inherently require a
payment license, particularly if the CASP maintains a clear boundary around fund transfers.
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5. When PSD2 Applies and Compliance Options

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5.1 Activities That May Require a PSD2 License

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When EMT services cross into the definition of payment services, CASPs should consider
compliance through licensing or partnership. Activities that may require a PSD2 license
include:

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● Custodial wallets for EMTs that support incoming and outgoing transfers
● Transfer services where EMTs are sent to or received from third parties
● Exchange of crypto and Execution of orders involving EMT transfers that result in
funds movement or use of payment accounts
● Placing of crypto-assets if EMTs are collected and distributed to external accounts

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5.2 Examples
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● A CASP offers a wallet where users can store EMTs. The wallet supports sending
EMTs to external wallets (e.g., merchants or self-custody) and receiving EMTs from
third parties.
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● A CASP executes orders on behalf of clients to purchase EMTs, which are then
transferred to an external investment wallet or exchanged for other assets. The EMTs
can be redeemed or withdrawn.
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● A crypto-native payroll provider enables companies to pay salaries in EMTs. The
provider receives fiat or crypto, converts to EMTs, and sends them to employee
wallets.
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● A CASP helps a project with a token launch and collects EMTs which are then sent to
the project team as part of the token mint.
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5.3 Compliance Pathways
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To comply with PSD2, CASPs have several options:
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● Obtain a full PSD2 license as a payment institution
● Partner with an existing PSD2-authorised provider like Januar
● Restructure the business model to eliminate fiat and EMT legs and restrict transfer
capabilities
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This flexibility means CASPs can either expand their regulatory footprint or streamline
operations to avoid dual requirements while maintaining compliance.
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6. Requirements of Dual Licensing for CASPs
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CASPs that wish to directly provide services involving EMTs which fall under PSD2 must
satisfy a distinct set of requirements, separate from MiCA compliance. These include:

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● Safeguarding of client funds: Unlike MiCA, PSD2 requires institutions to segregate
client funds and safeguard them via specific mechanisms such as deposit in a
separate account with a bank or central bank.
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● Capital requirements: PSD2 mandates initial and ongoing capital buffers that EBA
has made very clear needs to be held in addition to MiCA capital requirements (at
least +40%, potentially more depending on calculation method and additional
€125.000 for minimum capital.)

● Liability of fraud transactions: Payment institutions must reimburse customers of
losses due to fraud and theft, unless the PI can prove the customer used Strong
Customer Authentication (SCA).

● Conduct and transparency: Detailed obligations apply to client disclosures,
complaint handling, and communication of contractual terms.

● Supervisory reporting: PSD2 introduces a recurring compliance burden in terms of
periodic returns and notifications to the national competent authority.

● License application: EBA states that CASPs applying for a PI should not have to
resend documentation already sent as part of the CASP application. My experience
going the other way is that, as a startup, your company and procedures will likely
have changed just enough since the last application that you need to resubmit
everything and the deadline for approval is March 2026

● Dual supervision: Not all countries have the same supervisor handling payments
and crypto, so you need to maintain multiple NCA relationships, which might give
you contradicting messages on what is allowed.
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CASPs pursuing dual licensing must align their governance and risk framework to meet
both sets of obligations. Notably, the scope of PSD2 does not just involve crypto-related
rules, it involves the full payment institution framework applicable to fiat institutions.
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7. The Value of PSD Partnership: How Januar Ensures
Compliance
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7.1 PSD2 License: Instant Compliance Layer

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Januar is a fully licensed payment institution under PSD2. Crypto companies that partner
with Januar gain immediate access to compliant payment services without navigating the
lengthy licensing process themselves.

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7.2 MiCA Licensing in Progress
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Januar offer seamless infrastructure that bridges both crypto-asset and fiat payment layers.
This is currently offered under the grandfathering provisions of MiCA, Januar is awaiting its
CASP authorisation, which would position it as a dual-licensed entity.
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7.3 Partnering Model
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Under MiCA Article 70(4), CASPs may deliver payment services via a third party like Januar.
Our white-labeled infrastructure allows CASPs to:
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● Avoid duplicative regulation
● Comply transparently with PSD2 obligations
● Focus on product innovation while maintaining regulatory certainty
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7.4 Embedded accounts
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Januar clients can extend EUR account functionality to their own users through Embedded
Accounts. A feature that allows you to offer dedicated EUR IBANs and EMT custody via a
seamless API integration, without the need to become a dual licensed entity and take on the
regulatory complexity.

7.5 Client Communication

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Januar also assists partners in meeting MiCA’s transparency requirements, including clearly
informing end-users about whether payment services are delivered directly or through a
PSD2-licensed partner.

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7.6 Januar as a One-Stop Financial Partner

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Beyond PSD2-compliant infrastructure, Januar offers services tailored to the needs of
crypto businesses, including:

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● KYC and onboarding support for crypto-native clients
● Fiat payment accounts (SEPA/SWIFT) for operational use
● Compliance tools for MiCA, PSD2, and AML
● Stablecoin support with favorable rates, as we are official minting partners
● Treasury and settlement tools to manage fiat-crypto flows
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These services help CASPs streamline operations and ensure regulatory alignment while
staying focused on product development and growth.
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8. Conclusion
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As the European regulatory landscape sharpens with the EBA Opinion, clarity has improved
but complexity remains. EMTs now sit at the nexus of MiCA and PSD2. For CASPs,
understanding which services fall under which regime is no longer optional.
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The EBA has helpfully outlined cases where PSD2 applies and where it doesn’t, offering
CASPs a chance to adjust their models, seek partnerships, or apply for licenses. Key to
navigating this environment is understanding the threshold: when EMT-related activity
becomes a regulated payment service.
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While challenges remain, particularly concerning the broad definition of "payment
transactions" and the inclusion of first-party transfers, the transitional window offers a
valuable reprieve. Firms that act now can reduce long-term legal exposure and operational
risk.

9. Disclaimer

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This whitepaper is for informational purposes only. It does not constitute legal advice.
Regulatory interpretations may evolve and vary between jurisdictions. CASPs should
consult with qualified legal professionals before making structural or licensing decisions.
Januar maintains a directory of experienced advisors:
https://www.januar.com/resources/advisor-directory.

10. About Januar

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Januar is your one-stop financial partner for crypto businesses. As a regulated Payment
Institution and Crypto-Asset Service Provider (CASP), we provide the infrastructure and
tools you need to operate seamlessly across fiat and crypto, while staying fully compliant
with MiCA and PSD2.

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With a Januar account you can operate seamlessly across centralised and decentralised payment systems - bridging traditional finance and crypto through one compliant, unified infrastructure.
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Core Products:

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● Januar Account
Flexible business accounts tailored to your needs. Separate operational and client
funds, optimize cash flow, and structure your finances with ease. Embedded
accounts support EUR and DKK via SEPA Instant and USD via SWIFT, with more
currencies on the way.

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● Januar Wallet
A secure, institutional-grade wallet solution to manage and store your crypto assets
directly from your business account. Supports BTC (including Lightning), ETH, SOL,
USDC, and EURC, with more assets added based on demand. Full support for
third-party transactions included.

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● Januar Trade
Trade and convert fiat to crypto directly from your account. Streamline operations,
minimize errors, and ensure compliance through a unified platform with both API
and UI access. View and manage all trade activity in one place.
Whether you're launching a trading platform, issuing tokens, or scaling your crypto
operations, Januar gives you the financial foundation to grow securely and efficiently.
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Get in touch
Visit www.januar.com or write to sales@januar.com to become a customer or learn more
about how Januar can support your business.

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Download whitepaper here.