Payhound has secured approval under the European Union’s Markets in Crypto-Assets (MiCA) framework, boosting the company’s ability to manage digital assets payment and settlement services.
The firm now joins 89 companies authorised as Crypto-Assets Service Providers across the EU, working under a unified structure for the transfer, exchange and holding of crypto and stablecoins on behalf of clients.
Elton Dimech, Managing Director at Payhound, commented: “Achieving our MiCA licence reinforces the confidence operators and affiliates place in us. MiCA creates a clearer environment across Europe and supports the way our clients manage their crypto and stablecoin payments.”
Payhound had previously been operating under Malta’s VFA Category 3 framework.
Time for change
The EU first introduced the idea of an EU-wide crypto regulatory framework in 2020, and the European Council subsequently approved MiCA in April 2023.
The legislation seeks to provide consumer and investor protection, support innovation and growth of digital finance and combat illicit activities such as money-laundering and terrorism financing.
The EU has joined the likes of the US and UK in designing a legislative framework for digital assets, given their rising popularity, especially among younger demographics.
At the same time, the betting and gaming industry has also been forced to contend with the shift in player preferences led by crypto assets.
According to Payhound, gaining a MiCA licence will provide the operators, platforms and affiliate programmes it works with a stable framework for handling crypto and stablecoin deposits, instant conversions, affiliate payments and operational settlements across the EU.
Earlier this month, the UK Gambling Commission’s CEO, Andrew Rhodes, acknowledged that there is a “pressure building within the system” to cater to this new demographic within the UK, where crypto payments are not currently legislated for by the UK Gambling Act.
“The reality is, in some years to come, there will probably be a significant cohort of consumers who use cryptocurrencies because that is what they’re accustomed to. It is a demographic shift that will find they have no place in the legitimate industry because of the currency they use,” said Rhodes during his CEO briefing.
The UKGC chief called on the UK Government to lead discussions, as “once you open that door, you cannot close it”.
