27.10.2000 Official Journal of the European Communities L 275/39 DIRECTIVE 2000/46/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 September 2000 on the taking up, pursuit of and prudential supervision of the business of electronic money institutions THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular the first and third sentences of Article 47(2) thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the Economic and Social Committee (%), Having regard to the opinion of the European Central Bank (%), Acting in accordance with the procedure laid down in Article 251 of the Treaty (%), Whereas: (1)  Credit institutions within the meaning of Article 1, point 1, first subparagraph (b) of Directive 2000/12/EC (%) are limited in the scope of their activities. (2) It is necessary to take account of the specific characteris- tics of these institutions and to provide the appropriate measures necessary to coordinate and harmonise Member States' laws, regulations and administrative provisions relating to the taking up, pursuit and pruden- tial supervision of the business of electronic money institutions. (3)  For the purposes of this Directive, electronic money can be considered an electronic surrogate for coins and banknotes, which is stored on an electronic device such as a chip card or computer memory and which is gener- ally intended for the purpose of effecting electronic payments of limited amounts. (4)  The approach adopted is appropriate to achieve only the essential harmonisation necessary and sufficient to secure the mutual recognition of authorisation and prudential supervision of electronic money institutions, making possible the granting of a single licence recog- nised throughout the Community and designed to 1 () O] C 317, 15.10.1998, p. 7. () O] C 101, 12.4.1999, p. 64. () O] C 189, 6.7.1999, p. 7. (*) Opinion of the European Parliament of 15 April 1999 (O] C 219, 30.7.1999, p. 415), confirmed on 27 October 1999, Council Common Position of 29 November 1999 (O] C 26, 28.1.2000, p. 1) and Decision of the European Parliament of 11 April 2000 (not yet published in the Official Journal). Decision of the Council of 16 June 2000. Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions (O] L 126, 26.5.2000, p. 1). Directive as last amended by Directive 2000/28/EC (see page 37 of this Official Journal). () ensure bearer confidence and the application of the prin- ciple of home Member State prudential supervision. Within the wider context of the rapidly evolving elec- tronic commerce it is desirable to provide a regulatory framework that assists electronic money in delivering its full potential benefits and that avoids hampering techno- logical innovation in particular. Therefore, this Directive introduces a technology-neutral legal framework that harmonises the prudential supervision of electronic money institutions to the extent necessary for ensuring their sound and prudent operation and their financial integrity in particular. Credit institutions, by virtue of point 5 of Annex I to Directive 2000/12/EC, are already allowed to issue and administer means of payment including electronic money and to carry on such activities Community-wide subject to mutual recognition and to the comprehensive prudential supervisory system applying to them in accordance with the European banking Directives. The introduction of a separate prudential supervisory regime for electronic money institutions, which, although calibrated on the prudential supervisory regime applying to other credit institutions and Directive 2000/ 12/EC except Title V, Chapters 2 and 3 thereof in partic- ular, differs from that regime, is justified and desirable because the issuance of electronic money does not constitute in itself, in view of its specific character as an electronic surrogate for coins and banknotes, a deposit- taking activity pursuant to Article 3 of Directive 2000/ 12[EC, if the received funds are immediately exchanged for electronic money. The receipt of funds from the public in exchange for electronic money, which results in a credit balance left on account with the issuing institution, constitutes the receipt of deposits or other repayable funds for the purpose of Directive 2000/12/EC. It is necessary for electronic money to be redeemable to ensure bearer confidence. Redeemability does not imply, in itself, that the funds received in exchange for elec- tronic money shall be regarded as deposits or other repayable funds for the purpose of Directive 2000/ 12[EC. Redeemability should always be understood to be at par value.