Electronic Money Directive

The Electronic Money Directive (EMD) is a regulation by the European Union that provides a framework for issuing and managing electronic money (e-money). E-money represents funds stored electronically, like credits on prepaid cards or digital wallets. The directive ensures that e-money issuers follow specific rules to protect consumers and maintain financial stability, such as safeguarding funds and ensuring transparency in operations. It aims to promote competition and innovation in the financial sector while providing a clear legal framework for both providers and users of electronic money across EU member states.