The Regulatory Nightmare Is Now Official.
This week, the EBA dropped its long-awaited opinion on the MiCA–PSD2 interplay, and it’s… well, let’s call it what it is: a mess.
Let’s break it down.
The problem?
MiCA was supposed to be the comprehensive framework for crypto. But thanks to Article 48(2), stablecoins like EMTs are now legally “electronic money.” That means any CASP offering EMT transfers or custodial wallets may need to become a licensed payment institution under PSD2.
Yes, in addition to MiCA. Yes, by March 2026.
And yes, the EBA agrees this is “disproportionate” and “unnecessarily complex.”
So what’s their solution?
A transitional “don’t look too closely” period.
National authorities are “advised” not to enforce key PSD2 rules (like safeguarding, open banking, disclosures) until 2026, unless there’s fraud.
But the liability regime? That starts immediately.
So if a CASP doesn't implement Strong Costumer Authentication and something goes wrong... it is liable and has to pay up!
The EBA is trying to square a circle:
"We wish MiCA alone was enough. But it isn’t. So here’s how to survive the next two years, until lawmakers maybe fix this."
This is regulatory duct tape, not policy.
It creates:
- Massive uncertainty for innovators
- Compliance burdens that discourage smaller actors
- A slow path toward a Europe-only walled garden, as dual licensing discourages global interoperability
We’ve said it before and we’ll say it again:
- MiCA, for all its merits, was rushed and undercooked
- Trying to retro-fit crypto into legacy PSD2 logic is a short-term fix for a long-term misalignment
- If this continues, Europe will see fewer projects, more exits, and a growing gap with global innovation leaders
If you’re building in this space, March 2026 is not far.
And if you think the regulators are going to make it easy, you’re not paying attention.
We’ll keep saying it:
Europe doesn’t need more regulation.
It needs better, clearer, and technically grounded rules.
Let’s OffChain. 🧡
