EU CryptoReg roundup: February 2026

This update is brought to you by our Regulatory & Risk Advisory practice group in Ireland. 

Our aim is to keep you informed of the fast-evolving legal landscape, from new legislation and guidance to significant case law and observations. Sign up here to receive the next update in your inbox.

The 'key dates' section highlights key legislative and reporting dates relevant to Irish CASPs. 

Key developments this month include:

• Central Bank of Ireland publishes its Regulatory Supervisory Outlook Report 2026.
• Amending regulations introduce the PCF-57 Head of Safeguarding for CASPs in Ireland.
• EBA releases opinion on the transition period in its No Action Letter on the interplay between PSD2 and MiCAR
• ESMA publishes further Commission responses to MiCAR Q&As on various topics including whitepaper requirements, exchange models, and fixed overhead calculations. 
• ESMA releases public statement on derivatives in scope of CFD product intervention measures.

Legislation and guidance

Ireland

Irish Revenue update for CARF and DAC8

4 February 2026 - The Irish Revenue Commissioners (Irish Revenue) have updated its Tax and Duty Manual to cover the exchange of information on crypto-asset transactions under CARF and DAC8.

• CARF has been implemented in Ireland by the Finance Act 2025 and DAC8 has been implemented by the European Union (Administrative Cooperation in the Field of Taxation) Regulations 2025 with relevant reporting periods commencing on 1 January 2026.
  
  
• Reporting Crypto-Asset Service Providers are required to register with the Irish Revenue by 31 December 2026, with first returns due by 31 May 2027 covering the 2026 period. 

• With effect from 10 February 2026, persons proposed for the PCF-56 and PCF-57 roles must submit a PCF application via the usual process, i.e. the submission of the individual questionnaire (IQ).
  
  
• Where the firm has identified an individual who is deemed to be already performing the PCF-56 or PCF-57 role prior to 10 February 2026, an IQ is not required to be submitted. However, the firm must perform the required due diligence on these PCF role holders as set out in the Central Bank of Ireland (Central Bank) Guidance on the Standards of Fitness and Probity (2025). Once the due diligence is completed, the in-situ submission can be completed via the Central Bank portal.

Implementation of the European single access point

10 February 2026 – The Irish Minister for Finance signed three Statutory Instruments to implement the European Single Access Point (ESAP) framework in Ireland. 

• These regulations establish the foundational structure, designate national collection bodies, and amend existing financial legislation to ensure compliance with the new EU-wide data platform.
  
  
• As part of the legislative package, the European Union (European Single Access Point) (No. 3) Regulations 2026 amend the European Union (Markets in Crypto-Assets) Regulations 2024 (the MiCAR Regulations) to insert relevant provisions on the ESAP and to designate the Central Bank as the collection body for information required to be made accessible under Article 88 of MiCAR (public disclosure of inside information) which is required to be made accessible on ESAP under Article 110a(1) of MiCAR.
  
  
• These amendments to the MiCAR Regulations come into operation on 10 January 2030. From 10 January 2030, when making public inside information, issuers, offerors or persons seeking admission to trading shall submit certain information at the same time to the Central Bank for the purpose of making it accessible on the ESAP.
  

Europe

Updated EBA Opinion on interplay between PSD2 and MiCAR

12 February 2026 – The European Banking Authority (EBA) has published an opinion on supervisory actions to be taken by national competent authorities (NCAs) at the end of the transition period set out in its earlier No Action Letter on the interplay between PSD2 and MiCAR.

• By the time the No Action Letter transition period comes to an end on 2 March 2026, the EBA notes that three scenarios may arise for a CASP that intends to continue carrying out Electronic Money Token (EMT) transactions that qualify as a payment service as was set out in the No Action Letter. 
  
  
  
  • Firstly, where a CASP has obtained authorisation as a PI or EMI or partnered with an authorised payment service provider, it may continue to carry out EMT transactions in a way commensurate with its authorisation.
  • Secondly, where a CASP has submitted an application for authorisation but has not (yet) obtained an authorisation as a PI/EMI, the EBA advises that the NCA may allow the CASP to continue carrying out EMT transactions pending its decision on the application for authorisation, provided certain criteria are met. 
    
  • Thirdly, where a CASP has not submitted an application, or it has submitted an application but has not met the criteria required under scenario 2, the NCA is advised to require the CASP to cease providing EMT services and offboard clients.

ESMA MiCAR Q&As

18 February 2026 - The European Securities and Markets Authority (ESMA) has published a number of European Commission responses to Q&As under MiCAR.

• ESMA_QA_2552 - Application of Title II requirements to CASPs operating a trading platform for crypto-assets.
  
  • Article 5(2) of MiCAR requires CASPs operating a trading platform to comply with the requirements set out in Article 5(1) MiCAR, where they initiate the admission of crypto-assets to trading and no white paper has been published ‘in the cases required by this Regulation’.
  • The Commission notes, as clarified by recital 22 to MiCAR, crypto-assets without an identifiable issuer do not fall within the scope of Title II. It follows that no white paper is required for these crypto-assets under MiCAR and that, consequently, Article 5(2) MiCAR does not apply to the
  • This does not relieve CASPs of their broader MiCAR obligations, including the requirement to obtain authorisation, assess the suitability of crypto assets and determine whether an identifiable issuer exists.
  • Article 66(3) MiCAR shall be interpreted as meaning that operators of trading platforms must provide clients with hyperlinks to any white papers for the crypto-assets in relation to which they are providing services, provided that a white paper is required under MiCAR.

• ESMA_QA_2551 - Overlap between offers of crypto-assets and placing.
  
  
  • The Commission response provides that where a person offers to the public crypto-assets upon the written consent of the issuer, for instance, under Article 16(1) MiCAR (regarding asset-referenced tokens), that person acts on behalf of the issuer and no CASP license is to be required, where that activity is not exercised in the context of the provision of the crypto-services.
  • However, where the person offering crypto-assets to the public engages in the placing of crypto assets or in any other crypto-asset service covered by MiCAR carried out on a professional basis, it is to be considered as a crypto-service provider and that person must obtain a CASP license.

• ESMA_QA_2550 - Payouts in fiat currency by CASPs in the context of exchange services
  
  
  
  • The Commission response notes that a service whereby an entity offers clients to 'buy' a crypto-asset that is never delivered, and the client can only and exclusively receive the fiat currency value of such crypto-asset, is not to be allowed as a crypto-asset exchange service.
  • Where a client purchases a crypto-asset as part of an exchange service, it gives rise to an obligation on the CASP to transfer the purchased crypto-asset to the client.
    
    
• ESMA_QA_2486 - Interests earned from client funds deposited at credit institutions.
  
  
  
  • The Commission notes that MiCAR does not permit CASPs to earn interest on client funds deposited in a savings account at a credit institution. Article 70(1) to (3) of MiCAR is interpreted to mean that CASPs are obligated to deposit client funds in risk-free savings accounts and are not allowed to earn interest on them. 
  • Any interest resulting from a CASPs procedures to comply with the requirement of Article 70(3) MiCAR must be transferred to the client, as this revenue stems from the client’s funds.
    
    
• ESMA_QA_2349 - Calculation of fixed overheads.
  
  
  
  • The Commission confirmed that for the purposes of a CASP's prudential requirements, CASPs must calculate their fixed overheads for the preceding year from the total of all the CASP’s overhead expenses, both fixed and variable.
  • In that calculation, only the items listed in Article 67(3)(a)–(d) of MiCAR and no additional items may be subtracted. Article 67 does not open the definition of subtractable items to the discretion of the national competent authorities or CASPs.
    
    
• ESMA_QA_2320 – Custody - Clarification on Withdrawal Requirements under Article 75 of MiCAR for CASPs.
  
  
  
  • Article 75(6) of MiCAR, requires CASPs providing custody and administration of crypto-assets services to ensure that necessary procedures are in place to return the crypto-assets held on behalf of their clients, or the means of access, as soon as possible to those clients.
  • The Commission notes that CASPs should not provide custody of crypto-assets which they will foreseeably not be able to return to their clients and therefore, CASPs are not allowed to require clients to withdraw their crypto-assets in the form of equivalent fiat currency or other crypto-assets.
  • Any technical requirements, fees or conversion options for the client and conditions thereof must be agreed upon when entering into the agreement provided under Article 75(1) of MiCAR

ESMA Public Statement on derivatives in scope of CFD product intervention measures

24 February 2026 – ESMA published a public statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on contracts for differences (CFDs).

• The statement responds to the increased offering of derivatives, often marketed as perpetual futures or perpetual contracts, that provide leveraged exposure to underlying values, including crypto-assets such as Bitcoin and Ethereum. 
  
  
• ESMA notes that these financial instruments are likely to fall within the scope of the existing national product intervention measures on CFDs adopted by NCAs. For more information on the Central Banks CFD intervention measure see here. 
  
  
• Where these derivatives meet the definition of a CFD, they are subject to the applicable product intervention requirements, including leverage limits, a mandatory risk warning, a margin close-out and negative balance protection, and the prohibition of monetary and non-monetary benefits.

Other updates

Ireland

Central Bank regulatory supervisory outlook report 2026

26 February 2026 – The Central Bank has released its 2026 Regulatory and Supervisory Outlook Report which sets out the Central Bank’s perspective on the key trends and risks that are shaping the financial sector and its supervisory priorities for the next two years.

• On the topic of tokenisation, the Central Bank notes this has the potential to introduce efficiencies and broaden access to investment products for investors. The Central Bank has noted strong levels of engagement with organisations working on tokenised proposals with live applications under review.
  
  
• Regarding the crypto-sector, the Central Bank authorised ten CASPs in 2025 with a mix of retail-focused and institutional-focused business models and received 305 crypto-asset whitepaper notifications under MiCAR.
  
  
• The Central Bank notes that work is well underway to embed an appropriate supervisory approach for the recently established CASP sector. For 2026, there will be a focus on reactive supervision as the newly authorised CASPs seek to deploy their business models.
  
  
• Key focus areas for CASPs include:
  
  
  • Operational and cyber resilience: Targeted work will be conducted in 2026 on CASPs in relation to DORA compliance, in line with authorisation conditions. A thematic review to be undertaken by ESMA in respect of cyber risk as part of a wider Common Supervisory Action on the newly established CASP sector.
    
    
  • Treatment of customers: The Central Bank expects firms to have strong governance and risk management frameworks in place. Firms are expected to engage with the Central Bank before making material changes to their business including new products or services. Given the increasing risks associated with the rapid transformation of the crypto-asset sector and the increasing numbers of whitepapers, the Central Bank will fully engage in the ESMA work on MiCAR.
    
    
  • Custody of crypto-assets: Follow-up work to examine CASPs’ compliance with the custody requirements outlined in MiCAR and related authorisation conditions.
    
    
  • Financial integrity: CASPs will be required to complete an enhanced AML Risk Evaluation Questionnaire. Targeted assessment of certain CASPs in 2026, which will include on-site engagement to ensure that AML controls and processes are effective.
    
    
  • Market abuse and surveillance: Work with competent authorities to coordinate surveillance capability improvements for crypto markets within the EU. Cross-sectoral thematic review of market abuse frameworks and surveillance.

Europe

EU programming documents 

4 February 2026 – The EU Anti-Money Laundering Authority (AMLA) published its single programming document for 2026-2028.  

• As part of its annual work programme for 2026, AMLA's strategic priorities for the CASP sector include:
  
  
  
  • Conducting a strategic analysis exercise on the CASP sector and drafting a report on the state of the EU CASP sector and the impact of MiCAR from the AML/CFT lens.
  • Fostering a common understanding of supervisory practices in the CASP sector and producing a report on the compliance of CASPs with AML/CFT provisions and supervisory practices in this sector.
  • Setting up an expert network set up, with a focus on training, knowledge sharing and the exchange of best practices between Financial Intelligence Units in relation to crypto-assets.

5 February 2026 – ESMA has published its programming document for 2027-2029.

• In 2027 ESMA will monitor the effective implementation of the recommendations that ESMA issued following a peer review that it conducted in 2025 on the authorisation of CASPs in Malta. For more information on the ESMA peer review see our July 2025 CryptoReg update here.
  
  
• Additionally, ESMA expects that the European Commission will consult ESMA on a report that the European Commission is expected to issue by June 2027 on the application of MiCAR, which may be accompanied by legislative proposals.
  
  
•  Regarding tokenisation, ESMA will: (i) continue monitoring consistent classification of any assets issued, traded and settled using the DLT to ensure a consistent implementation of MiFID, MiCAR or the DLT Pilot Regime across the EU, (ii) identify supervisory and regulatory challenges linked to tokenisation, and (iii) feed these insights into ESMA’s future policy work, including the upcoming review of the DLT Pilot Regulation.

11 February 2026 – The European Data Protection Board (EDPB) has adopted its work programme for 2026-2027.

• The EDBP will develop guidelines on anonymisation and aim to finalise its guidelines on pseudonymisation and blockchain, which are relevant for assessing GDPR compliance of data processing using distributed ledger technologies.

ECON draft report on digital assets

19 February 2026 – The European Parliament's Committee on Economic and Monetary Affairs (ECON) published a draft report on digital assets, examining the implications of crypto‑assets, tokenisation and stablecoins for the competitiveness and integrity of the EU financial system.

• As part of the report, ECON calls on the EU supervisory authorities to strengthen the supervisory dialogue on significant multi-function groups (MFGs) and underlines the need to align the MiCAR policy framework for significant non-bank MFGs.
  
  
• ECON notes that it regrets the role that crypto-assets play in evading AML/CFT regulations and sanctions and stresses the importance of finding a better balance between privacy and transparency in ‘know your customer’ standards and the monitoring of payments.
  
  
• ECON calls on the European Commission to come forward with a legislative proposal urgently on multi-issuance of stablecoins schemes to ensure legal certainty, and to provide strong prudential safeguards, robust cooperation arrangements, and enhanced crisis management protocols.

Speeches and interviews

3 February 2026 – Patrick Montagner, a member of the Supervisory Board of the European Central Bank (ECB), delivered a keynote address at the 10th Annual FinTech and Regulation Conference, focusing on innovation and change in banking.

• The address highlighted three supervisory principles guiding the ECBs assessment of tokenisation, including: i) ensuring consistent implementation of international standards; ii) expecting banks to put forward realistic business cases for pilots and to carry out a thorough cost-benefit analysis; and iii) expecting traditional and tokenised solutions to operate side by side.

3 February 2026 – Verena Ross, Chair of ESMA, delivered a keynote speech titled 'Digital Finance as a Catalyst for Europe’s Capital Market Integration' at the 10th Annual FinTech and Regulation Conference.

• Verena Ross discussed proposed changes in the Markets Integration Package which would make ESMA the supervisory authority for CASPs and emphasised the importance of a consistent supervisory approach to MiCAR across the EU to avoid regulatory fragmentation.
  
  
• Verena Ross also notes that European Commission’s forthcoming consultation on the substance of MiCAR will be also important. It will allow ESMA to assess whether further updates are needed, particularly in relation to key questions such as the application of MiCAR to decentralised finance or to services that are currently only indirectly regulated, such as staking.

18 February 2026 – Piero Cipollone, a member of the Executive Board of the ECB, delivered a presentation on the digital euro at the ABI Executive Committee Meeting.

• Banks and payment service providers are expected to play a central role in distribution of the digital euro, with a potential first issuance targeted for 2029, assuming that the EU co-legislators will adopt the regulation on the establishment of the digital euro in the course of 2026.
  
  
• The presentation notes a target date of May 2026 for the adoption of the Parliament position on the digital euro regulation. 

21 February 2026 – Christine Lagarde, President of the ECB, gave an interview to the Wall Street Journal in which she reiterated the ECB’s mandate of price and financial stability and the importance of safeguarding the euro. 

• Ms Lagarde emphasised the ECB’s cautious stance on crypto‑assets noting that they 'are worth nothing and are a speculative asset of first order' and the potential of stablecoins to disrupt the market.