Fintech 2026

ESTONIA Trends and Developments Contributed by: Yuliya Barabash, Ivan Nevzorov, Daria Lysenko and Nikita Prokopenko, SBSB FinTech Lawyers

To that end, the EBA advises National Competent Authorities (NCAs), during the intervening period of two to three years during which PSD2 still applies until the application date of the future PSR and the trans - position date of the future PSD3: • to regard transfers of crypto-assets as a payment service under PSD2 where they entail EMTs and are carried out by the entities on behalf of their clients; • to regard the custody and administration of EMTs as a payment service under PSD2; and • to regard a custodial wallet as a payment account under the PSD2 where the wallet is held in the name of one or more clients and allows the send - ing and receipt of EMTs to and from third parties. For these services, the No Action letter advises NCAs to require an authorisation under PSD2 through streamlined procedures that make maximum use of information that legal entities have already provided during their CASP authorisation under MiCA. How - ever, NCAs are advised to grant applicants a transi - tion period until 1 March 2026 before the authorisation needs to be held. After that date, NCAs are advised to prevent entities that are not licensed as a PSP, or have not entered into a partnership with a PSP, from providing services related to EMTs that qualify as a payment service. The EBA’s long-term goal is to create a unified, more efficient system and eliminate the need for double authorisation. To this end, the EBA proposes certain adjustments to MiCA – embedding provisions of the forthcoming PSD3/PSR on fee transparency, SCA, fraud reporting, own-funds calculation, and consumer protection. In that case, a CASP working with EMT would remain under the single MiCA framework yet would still have to comply with payment standards. So, certain services connected with crypto-assets may qualify as payment or e-money services under PSD2 or the E-Money Directive. In such cases, the Estonian Payment Institutions and E-Money Institu - tions Act ( makseasutuste ja e-raha asutuste seadus ) applies.

Deadlines Prior to 30 December 2024, businesses engaged in crypto-asset activities in Estonia could apply for authorisation as a virtual currency service provider (VCSP) under the AML Act. From that date, it is no longer possible to apply for this authorisation. Instead, businesses whose activities fall within the scope of MiCA must apply for authorisation as a CASP. VCSPs holding a valid authorisation under the AML Act and carrying out activities within the scope of MiCA are subject to a transition period. They must: • bring their activities into compliance with the requirements of the CMA, and • apply for authorisation as a CASP no later than 1 July 2026 , unless they discontinue their activities. Once authorisation under the MCAA is granted, the previous VCSP authorisation becomes void. All VCSP authorisations will in any event cease to have effect on 1 July 2026. If a VCSP submits an application for authorisation to the EFSA before 1 July 2026, and the EFSA has not yet made a decision by that date, the VCSP’s activi - ties will not be considered unauthorised or subject to criminal liability under the Estonian Penal Code. If a VCSP has submitted an application for an activity licence to the EFSA before 1 July 2026 and the EFSA has not decided to grant or refuse an activity licence by the said deadline, the activities of the said under - taking shall not be deemed to be activities without an activity licence within the meaning of the Penal Code. In such a case, the VCSP shall not be permitted to conclude new customer contracts from the said date until the decision to grant or refuse an activity licence is made. General requirements for CASP To qualify for a CASP authorisation in 2026, applicants must demonstrate robust prudential and operational foundations.

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