European banking authority publishes guidelines for payment services and crypto providers

On November 14, the European Banking Authority (EBA) published two sets of guidelines concerning Payment Service Providers (PSPs) and Crypto Asset Service Providers (CASPs).

The primary objective of these documents is to address shortcomings in Europe’s banking sector and ensure compliance with the European Union (EU) restrictive measures and national regimes during fund or cryptocurrency transfers.

Challenges of non-compliance with restrictive measures

The European Business Association emphasized that deficiencies in internal policies, procedures, or control systems can pose significant risks to financial institutions.

Such violations may not only undermine the effectiveness of restrictive measures but also negatively impact the stability of the EU's financial ecosystem.

The EBA's guidelines will come into effect on December 30, 2025.

The role of crypto providers in financial stability

Payment and crypto providers are required to ensure compliance with EU sanctions by strengthening their internal monitoring systems.

This will help mitigate operational and legal risks associated with potential violations and ensure effective interaction with risk management regimes.