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The Commission put forward a proposal revising the current rules governing the conditions for issuing electronic money in the EU and providing for a legal framework for issuing electronic money.
The proposal includes a reviewed definition of "electronic money", covering all situations where the payment service provider issues a prepaid stored value in exchange of funds. E-money is therefore defined as monetary value stored electronically on receipt of funds and which is used for making payment transactions.
The proposal also foresees a new prudential regime, ensuring greater consistency between prudential requirements of electronic money institutions and payment institutions under the Payment Services Directive. The new prudential requirements include an initial capital of EUR 125.000 enabling market entrance for smaller players and a new formula to determine ongoing capital.
A third point of the proposal is a clarification of the application of redemption requirements, with special reference to their application to mobile telecommunications.