# E-money regulation and an introduction to EMD2

> When assessing e-money regulation, how the product works, the organisation's activity and the relevant national implementation are considered together.

Canonical: https://legichain.com/en/resources/e-money-regulation-and-emd2

When assessing e-money regulation, how the product works, the organisation's activity and the relevant national implementation are considered together. A KYC integration supports only one part of these assessments.

## Define the product

Whether the service offered to the customer has the character of payment, e-money or another activity affects the requirements. A commercial product name does not replace legal classification.

## Controls and operations

Handle customer onboarding, record-keeping and risk processes without detaching them from the institution's broader obligations. Do not present a screening product as a compliance guarantee for the whole regulation.

## Current framework

EMD2, the relevant national regulations and the changing EU framework must be checked together. Do not confuse a description of the old directive with the current product scope.

> This content is general information. Determine the requirements that apply to your institution from current official sources and your own assessment process.

**See the related product scope** → [Payment and e-money solution](https://legichain.com/en/solutions/e-money)

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