2023/0211/COD: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the provision of digital euro services by payment services providers incorporated in Member States whose currency is not the euro and amending Regulation (EU) 2021/1230 of the European Parliament and the Council

In view of the planned creation of a basic framework for the introduction of a Digital EURO and thus the creation of a single currency framework, the European Commission has published another draft regulation entitled Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the provision of digital euro services by payment services providers incorporated in Member States whose currency is not the euro and amending Regulation (EU) 2021/1230 of the European Parliament and the Council. This particular draft seeks to lay down rules for the engagement of EU payment services providers (PSPs) in the Digitial EURO, whose currencies are not the EURO and the competent authority of which also do not have the EURO. The draft also seeks to outline corresponding supervisory obligations of the respective competent authorities.
#### In detail, the draft specifies, among other things,
(1) the persons that may be offered Digital EURO services by a non-EURO, but EU PSP, including
– (legal) persons residing or established in member states whose currency is the EURO or that once resided or were created there, but are no longer doing so;
– visitors (provided that they meet certain conditions); or
– (legal) persons created or residing in countries with whom there is a monetary agreement on the use of the Digital EURO;
(2) the laws and regulations non-EURO PSPs offering or seeking to offer Digital EURO payment services must adhere to, including the Directive (EU) 2015/2366 – the Payment Service Directive 2 (PSD 2) or Directive (EU) 2015/849 – the 4th anti-money laundering Directive; and
(3) the supervisory obligations of competent authorities whose currency is NOT the EURO: Specifically, the draft would define that the supervisory arrangements between home and host Member States outlined in the PSD 2 and the forth anti-money laundering Directive also apply to the payment services relating to the Digital EURO. In other words, the non-EURO member state competent authority will be responsible for supervising the non-EURO PSP and will be required to cooperate with the European Central Bank as to the prevention of money laundering.