Key Moments:
- Payhound has received authorization under the European Union’s Markets in Crypto-Assets (MiCA) framework.
- The new MiCA license transitions Payhound from Malta’s VFA Category 3 regime to an EU-wide regulatory standard.
- The MiCA framework is designed to enhance consumer protections, support innovation, and address illicit activity in digital assets.
Payhound Gains Pan-EU Regulatory Clearance
Payhound has been granted approval to operate as a Crypto-Assets Service Provider under the European Union’s Markets in Crypto-Assets (MiCA) regime. This new authorization provides Payhound with a unified legal structure for conducting digital asset transfers, conversions, and settlement services throughout the EU. As a result, Payhound joins 89 licensed providers now working under the EU’s latest rules governing crypto and stablecoins.
Transition from Malta’s VFA to Harmonized EU Rules
Prior to this MiCA authorization, Payhound was regulated under Malta’s VFA Category 3 framework, which set national standards for virtual financial asset activities. Moving to the MiCA regime opens up broader operational scope across Europe and represents a significant regulatory upgrade for the company. According to Managing Director Elton Dimech, “the licence reinforces confidence among operators and affiliates and creates a clearer environment for clients handling deposits, conversions and settlement flows.” This shift empowers Payhound to expand its crypto and stablecoin payment solutions for platforms integrating digital assets within operational and affiliate models.
EU’s MiCA: Building Trust and Reducing Risk
The Markets in Crypto-Assets framework was approved by the European Council in April 2023, after initial policy discussions began in 2020. The legislation is intended to bolster consumer protections, encourage innovation in digital finance, and curtail risks tied to illicit activities such as money laundering and terrorism financing. With MiCA, the EU aligns itself with other major jurisdictions, including the US and UK, in establishing robust rules for digital assets. The adoption of this framework coincides with increased use of crypto among younger consumers and a rising need for secure digital payment options in betting and gaming markets.
Demographic Shifts Spur Regulatory Attention
Market regulators have noted the significant role that younger consumers now play in adopting crypto-integrated payment methods. UK Gambling Commission CEO Andrew Rhodes stated that “a demographic shift is underway, with younger cohorts banking on crypto as a primary payment method.” He warned that without legislative updates, these consumers could face exclusion from regulated gambling sectors. Rhodes added that allowing crypto payments is a one-way process, urging lawmakers to be proactive in shaping legitimate markets for digital asset integration.
Payhound Targets Enhanced Frameworks for Operators
With the new MiCA license, Payhound aims to provide a stable, standardized model for operators and affiliates to manage crypto deposits, handle instant conversions, process affiliate payments, and conduct operational settlements. The company noted this approval reflects the increased demand for compliant digital asset payment solutions among regulated European gambling operators. As MiCA transforms the crypto regulatory landscape, Payhound’s license enables the firm to help clients adapt to evolving requirements for digital financial services.
| Aspect | Details |
|---|---|
| Regulatory Framework | Markets in Crypto-Assets (MiCA) |
| Region | European Union |
| Previous License | Malta VFA Category 3 |
| Key Sectors Impacted | Betting and Gaming |
| Number of MiCA Licensees | 89 |
- Author
Daniel Williams
