EMI Account for a VASP: How a Crypto Firm Holds Client Money under MiCA
A CASP may use an EMI account to collect client money, then must move it to a bank or central bank by the next business day (MiCA Art. 70, ESMA Q&A 2949).
A crypto-asset service provider (CASP, the MiCA term for what was called a VASP) may collect client money on a payment account at an electronic money institution (EMI) or a payment institution. MiCA then sets a deadline: by the end of the business day after the money arrives, the CASP places those funds with a credit institution or a central bank, on an account in its own name. ESMA confirmed this reading in its Q&A 2949 of 6 October 2026. An EMI account therefore works as the operating and collection account of a VASP, and a bank account holds the client money overnight.
This guide sets out what Article 70 of MiCA requires, where an EMI fits, and what a CASP prepares before it asks an EMI or a bank for an account.
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What MiCA Article 70 says about client money
Article 70 of Regulation (EU) 2023/1114 (MiCA) covers the safekeeping of clients' crypto-assets and funds. Four paragraphs matter for the account set-up:
| Paragraph | Rule | What it means for the accounts |
|---|---|---|
| 70(2) | A CASP whose business model requires holding clients' funds other than e-money tokens has adequate arrangements to safeguard the clients' ownership rights and to prevent the use of those funds for its own account | Client money is kept apart from the firm's own money from day one |
| 70(3) | By the end of the business day following the day the funds were received, the CASP places them with a credit institution or a central bank, in an account separately identifiable from its own accounts | A bank or central bank account is required for client funds held overnight |
| 70(4) | A CASP may provide payment services related to its crypto-asset services itself or through a third party, provided that it or the third party is authorised under the Payment Services Directive (EU) 2015/2366, and informs clients which entity provides them | Payouts, card acquiring and transfers go through an authorised payment institution or EMI |
| 70(5) | Paragraphs 2 and 3 do not apply to a CASP that is itself an electronic money institution, a payment institution or a credit institution | A CASP that also holds an EMI or PI licence follows its own safeguarding rules |
ESMA Q&A 2949: the EMI account as a transit account
ESMA answered the exact question on 6 October 2026 (Q&A 2949, "Use by CASPs of payment accounts provided by non-bank payment service providers for holding clients' funds"). The answer has three parts:
- An authorised CASP may temporarily place clients' funds in a payment account with a non-bank payment service provider, such as an EMI or a payment institution, and meets the safeguarding duty of Article 70(2) while the money is there.
- No later than the end of the business day following the day the funds were received, the CASP places them with a credit institution or a central bank, as Article 70(3) requires.
- That account is opened and kept in the CASP's own name, or in line with the applicable legal segregation arrangement. An account held in the name of the EMI or payment institution, even one opened specifically for the CASP and technically segregated, does not satisfy Article 70(3): the CASP would only hold a claim against the provider.
In practice a CASP that works with fiat runs at least two accounts: a payment account at an EMI for collections and payouts, and a safeguarding account at a credit institution for client money held past the next business day. The firm's own operating money can sit at either.
When the EMI account is the whole answer
Two situations need no separate bank account for client funds:
- The business model holds no client fiat. Article 70(2) applies where the business model or the services require holding clients' funds. A CASP whose services involve no client fiat, advice on crypto-assets for example, keeps only its own money, and its operating account can be at an EMI.
- The CASP is itself an EMI, a payment institution or a credit institution. Article 70(5) switches paragraphs 2 and 3 off, and the firm's own e-money or payment rules on safeguarding apply instead.
Every other CASP that holds client money overnight needs the credit institution or central bank account.
Travel rule and AML: what the EMI checks on its side
Since 30 December 2024 CASPs fall under the EU anti-money laundering regime and Regulation (EU) 2023/1113 on information accompanying transfers of funds and crypto-assets (the "travel rule"). The EBA's travel rule guidelines (EBA/GL/2024/11) apply from the same date. An EMI or a bank that opens an account for a CASP is itself an obliged entity, so its onboarding looks at the CASP's own compliance set-up. A complete file usually covers:
| Area | Documents a CASP has ready |
|---|---|
| Authorisation | The MiCA CASP authorisation and the services it covers; the entry in ESMA's interim MiCA register |
| Ownership and management | Shareholder register, ultimate beneficial owners, directors, source of funds for the share capital |
| AML/CFT programme | Business-wide risk assessment, customer due diligence policy, transaction monitoring, the compliance officer and the MLRO |
| Travel rule | How originator and beneficiary information travels with crypto-asset transfers, the provider used, the procedure for missing information |
| Flows | Expected monthly volumes in and out, currencies, countries of clients and counterparties, the share of client funds and own funds |
| Safeguarding | Which credit institution holds client funds, how the next-business-day transfer is run and reconciled |
MiCA's transitional regime is over. ESMA describes the grandfathering clause as letting firms that provided services under national law continue "until 1 July 2026 or until they are granted or refused a MiCA authorisation". Since July 2026 an EMI checks a CASP against the MiCA authorisation itself.
Where INNOVA helps
INNOVA prepares the licence file and the banking file for crypto firms in one project: the CASP authorisation, the AML programme and the travel rule procedure, and the applications to EMIs and banks with flows and safeguarding described the way their onboarding teams ask for them. For a firm that wants its own e-money licence, Article 70(5) applies and the route is EMI licence in Estonia.
Related pages: VASP in Estonia · Crypto exchange licence in Estonia · EMI partnership in Estonia · Crypto licensing in 2026 · Banking for international companies
FAQ
Can a VASP or CASP hold client money on an EMI account?
Yes, temporarily. ESMA's Q&A 2949 of 6 October 2026 confirms that an authorised CASP may place clients' funds in a payment account with a non-bank payment service provider, such as an EMI. By the end of the business day after the funds arrived, the CASP moves them to a credit institution or a central bank under MiCA Article 70(3).
Does a CASP need a bank account under MiCA?
A CASP that holds clients' funds other than e-money tokens past the next business day needs an account with a credit institution or a central bank, in its own name and separately identifiable from its own accounts (MiCA Article 70(3)). A CASP that is itself an EMI, a payment institution or a credit institution is exempt from this rule under Article 70(5).
Does a segregated account opened by an EMI for the CASP count?
According to ESMA's Q&A 2949, an account held in the name of the EMI or payment institution does not satisfy Article 70(3), even when it was opened specifically for the CASP and is technically segregated. The account must be in the CASP's own name, or follow the applicable legal segregation arrangement.
Who can make payouts for a crypto firm?
MiCA Article 70(4) allows a CASP to provide payment services related to its crypto-asset services itself or through a third party, as long as the provider is authorised under the Payment Services Directive (EU) 2015/2366. The CASP tells clients which entity provides the payment service and under which terms.
What does an EMI ask a crypto company for?
Expect questions on the MiCA authorisation, ownership and source of funds, the AML/CFT programme, the travel rule procedure under Regulation (EU) 2023/1113, expected volumes and corridors, and where client funds are safeguarded. Each provider sets its own risk appetite and document list.
Sources (checked 26 October 2026):
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA), Article 70: eur-lex.europa.eu, CELEX 32023R1114
- ESMA, Q&A 2949 "Use by CASPs of payment accounts provided by non-bank payment service providers for holding clients' funds", answer of 6 October 2026: esma.europa.eu, Q&A tool
- ESMA, Markets in Crypto-Assets Regulation (MiCA): esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica
- Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets: eur-lex.europa.eu, CELEX 32023R1113
- EBA, Guidelines EBA/GL/2024/11 on information requirements for transfers of funds and certain crypto-assets (travel rule guidelines), apply from 30 December 2024: eba.europa.eu
For information only. The rules above are quoted from EU law and ESMA's published answers; whether a given EMI or bank opens an account is that provider's decision.
This material is for general information only and does not constitute legal or tax advice. Accurate as of the publication date.