> For the complete documentation index, see [llms.txt](https://www.mica.wtf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.mica.wtf/eu-level/q-and-a/eba-qa-7084-emt-exchange-qualification.md). # EMT exchange: crypto or funds? | | | | --------------- | ------------------------------------------------------------------------------------------ | | **Authority** | EBA | | **Q\&A ID** | EBA\_QA\_2024\_7084 | | **Status** | Answer Published | | **Published** | 8 May 2026 | | **Legal basis** | [Article 3](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md) MiCA | | **Source** | [EBA Q\&A](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2024_7084) | ### Question Should the service consisting in exchanging [electronic money](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/emd2/electronic-money.md) tokens for other crypto-assets be qualified as exchange of crypto-assets for crypto assets or as exchange of [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md) for crypto assets? ### Background Crypto asset services providers (CASPs) will in the future provide the regulated service consisting in exchanging [electronic money](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/emd2/electronic-money.md) tokens for other crypto assets. However, due to the fact that electronic money tokens are a type of [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset.md) deemed to be electronic money (MICAR 48(2)), and that electronic money is to considered as "[funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md)", it is therefore not entirely clear if CASPs would, in this situation, exchange crypto-assets (understood as EMT) for crypto assets or exchange funds (i.e. EMT) for crypto assets. This can have an impact on the compliance of said CASPs regarding payment regulation (PSD2) since if the collection of "funds" occur for a third party (in specific cases where the CASP acts as an intermediary between holders and liquidity providers for example), then CASPs would need to either be authorized under PSD2 or be registered as an agent under the same directive. Hence, clarification as to whether or not EMT are to be seen as funds or as crypto-assets in this situation is key to assess the overall compliance of CASPs' business models *Submitted by: Autorité de contrôle prudentiel et de résolution (France) · 14 May 2024* *** ### Answer *Answer prepared by the European Commission* [Article 3(1), point (7)](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md) MiCAR defines e-money tokens as "a type of [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset.md) that purports to maintain a stable value by referencing the value of one [official currency](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/official-currency.md)". [Article 3(1), point (14)](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md) MiCAR defines funds by referring to Article 4(25) of Directive (EU) 2015/2366. The notion of "funds" in Article 4(25) of Directive (EU) 2015/2366 includes "electronic money". [Article 48(2)](/mica/title-iv-e-money-tokens-art.-48-48/chapter-1/article-48.md) MiCAR provides that e-money tokens are to be deemed electronic money. However, although e-money tokens are to be deemed electronic money pursuant to [Article 48(2)](/mica/title-iv-e-money-tokens-art.-48-48/chapter-1/article-48.md) MiCAR, and therefore be considered funds, they are defined, in [Article 3(1), point 7](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md) MiCAR, as a type of crypto-asset and should therefore be considered as such for the purpose of interpreting them within the scope of crypto-asset services governed by MiCAR. *** *The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law.* *** **Source:** [EBA Single Rulebook Q\&A](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2024_7084) ### Related * [official currency](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/official-currency.md) — defined term used on this page * [electronic money](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/emd2/electronic-money.md) — defined term used on this page * [electronic money](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/electronic-money.md) — defined term used on this page * [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset.md) — defined term used on this page * [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/tofr/crypto-asset.md) — defined term used on this page * [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md) — defined term used on this page * [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/psd2/funds.md) — defined term used on this page * [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/tofr/funds.md) — defined term used on this page --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://www.mica.wtf/eu-level/q-and-a/eba-qa-7084-emt-exchange-qualification.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.