Stablecoins and Payments in Europe: Navigating the MiCA and PSD2 Intersection

Context and Introduction

Keynote by Barina Vilonga, crypto asset regulation specialist at Asencia Abogados, on European regulatory requirements for Latin American crypto asset service providers (CASPs) seeking to operate in the European Union, particularly focused on stablecoins, money tokens (EMTs), and the complex regulatory framework of MiCA and PSD2.

Key Learning Points

• Reverse Solicitation (MiCA Article 61): Third-country CASPs can serve European clients via reverse solicitation (client-initiated), but interpretation is extremely narrow: no marketing, no retargeting, no European languages, no influencers, separate client buckets required. Not viable for growth strategy.
• Dual License Requirement (since March 2, 2026): Stablecoin/EMT providers need both MiCA license and PSD2 (Payment Service Directive) license, creating "double licensing requirements" that significantly complicate European market entry.
• Dual Nature of EMTs: Money Tokens (stablecoins) are defined as electronic money and simultaneously as funds under European regulations, causing overlap: EMT transfer = fund transfer = payment transaction = requires payment institution authorization (PSD2).
• Custodial Wallets as Payment Accounts: Depending on structure, custodial wallets may be considered payment accounts under PSD2; even first-party transfers may be classified as payment services, requiring additional compliance.
• Compliance Duplication: Need to simultaneously comply with MiCA requirements (security, identification, governance) and PSD2 requirements (capital requirements, fraud prevention, security, identification), creating significant operational and cost complexity.
• Latin American Difference: In Latin America, stablecoin and payments regulatory requirements are generally resolved under a single regulatory framework; no overlap or simultaneous dual license requirement exists like in Europe.

Features and Methodology

European Regulatory Framework: MiCA (Markets in Crypto-assets Regulation), PSD2 (Payment Services Directive 2), and EMD (E-Money Directive) interact with cross-references creating jurisdictional overlap. European regulators interpret exceptions restrictively. Since March 2, 2026, all CASPs offering stablecoin services must comply with both regulations.

Dual Regulation: MiCA defines EMTs as money tokens (stablecoins), PSD2 defines electronic money as funds; both regulations overlap in payment service definitions, creating requirement for two independent authorizations from different regulatory authorities.

Differentiators and Challenges

Key Problems: (1) Dual nature of EMTs under MiCA and PSD2; (2) Custodial wallets may be reclassified as payment accounts; (3) European deadline already passed (March 2) without clear solutions; (4) Reverse solicitation not viable due to extremely strict restrictions; (5) Regulatory compliance duplication with requirements that must be combined.

Proposed Solutions: (1) Pure MiCA Business: do not offer stablecoins/transfers; (2) Closed Wallet Architecture: design wallets to not be payment accounts; (3) Partnership with European PSP: collaborate with already-licensed European payment service provider (best current option); (4) Hybrid Structure: create separate entities in group (one with MiCA, one with PSD2) with intragroup agreements.

Synthesis

Latin American crypto asset service providers wanting to operate stablecoins in Europe face a complex and restrictive regulatory landscape. The dual license requirement (MiCA + PSD2) represents the most significant barrier. Reverse solicitation strategy is not practically viable. Most viable current solutions: partnerships with established European payment service providers (avoids structure duplication), or hybrid intragroup structures. Future prospects: PSD3 could unify requirements into single license, but still in drafting process. Recommendation: design product with regulatory framework in mind before attempting European expansion.