The No-Action Letter addresses the dual classification of EMTs as both crypto-assets under MiCA and electronic money under Article 48(2) of MiCA. In summary, the EBA advises EU national competent authorities (NCAs) to grant a transition period until 2 March 2026 before enforcing authorisation requirements for PSD2 for CASPs. Our previous blog post, which analyses the No-Action Letter, can be found here.

The Circular summarises the No-Action Letter and encourages interested parties to consult the full document for the legal basis and the specific comments and advice given on each of the key areas of interplay between PSD2 and MICA as identified by the EBA.

No guidance is provided in the Circular on how the dual-licensing approach envisaged by the No-Action Letter (after 2 March 2026) will be applied in Cyprus.

Importantly, while CySEC acts as the NCA for CASPs under MiCA, the Central Bank of Cyprus is instead the NCA for PSD2 purposes. It is currently unknown whether guidance clarifying the roles of each NCA is expected to be issued in the future.

CySEC’s Circular C722 can be found here and EBA’s Opinion here