The European Commission has published a report on the implementation and impact of the second Electronic Money Directive (EMD2).
The report focuses on the application of prudential requirements for electronic money institutions and discusses the relationship between EMD2 and the Fourth Money Laundering Directive. The European Commission concluded that:
- the overall assessment of the EMD2 is positive as to a large extent is has fulfilled its objective of removing barriers to market entry and to facilitate the take up and pursuit of the business of electronic money issuance, by creating a level playing field for all players in the market;
- further improvements could be made to enhance the current regulatory framework. Concrete improvements could thus be delivered in the short or medium term by providing guidance in three areas, namely the classification of products as e-money, the application of the limited network provision and the distinction between the concept of an agent and a distributor in the context of e-money; and
- further consideration could be given, in the longer term, to promoting maximum harmonisation for specific provisions, in particular with regard to the currently optional waiver regime foreseen for small electronic money institutions under Article 9 of the EMD.