HodlX Guest Post
MiCA and the Rise of Merchants’ Trust in the Crypto Payments Industry – Is It Possible?
The European Union is set to make significant progress with the implementation of the Markets in Crypto-Assets Regulation (MiCA). While there has been much discussion about transparency, investor protection, and regulation of stablecoins, one area that hasn’t received as much attention is the development of crypto payments in light of these upcoming changes. With MiCA coming into effect, we can expect a surge in the willingness of low-risk businesses to enable crypto payments. Here’s why:
Coverage is finally closed to global
- Crypto payment gateways have always emphasized global coverage.
- However, prior to MiCA, the regulatory environment for crypto payments in the EU was fragmented, with each country having its own laws and interpretations.
- This lack of a cohesive framework created inconsistencies and posed challenges for cryptocurrency payment providers looking to expand their services across different EU countries.
- MiCA regulation will help solve these issues by allowing businesses to obtain a single license that enables them to operate across multiple European jurisdictions.
- Merchants will be able to offer crypto payments across targeted countries through a single provider, achieving coverage that is close to global.
Regained trust in the industry will force businesses to accept crypto
- The lack of a unified approach to regulation has allowed for market manipulations, undermining consumer trust and hindering broader acceptance of cryptocurrencies.
- The recent FTX collapse highlighted the need for global enforcement of crypto regulations.
- Investors were left unprotected, and the industry’s reliability was called into question.
- This lack of trust not only affects investors but also financial institutions, such as banks, that are hesitant to work with crypto players due to transparency and control concerns.
- Consumer trust is crucial for the wider adoption of crypto payments.
- As the crypto industry regains trust, businesses will see accepting crypto as a competitive advantage.
Stablecoins are ideal for low-risk industries
- Stablecoins, especially e-money tokens (EMTs), are receiving significant attention in terms of regulation.
- EMTs are designed to mirror the value of an official currency, making them suitable for everyday payments.
- The stablecoin economy has been growing, indicating increased investor interest.
- MiCA’s regulation will bring clarity to price formation and consumer protection, further promoting the use of EMTs for everyday payments.
Final Thoughts
The introduction of MiCA is a step towards a safer future for the crypto industry. However, both the crypto and public sectors need to actively participate in implementing the provisions of MiCA. If successful, the new license regime will attract more low-risk customers for crypto payment providers. This will lead to greater trust in the industry and wider adoption of crypto payments by merchants.
About the Author:
Max Krupyshev is the CEO and co-founder of CoinsPaid, a crypto payment solution for businesses registered in Estonia. He has been involved in the crypto world since 2013 and played a key role in promoting crypto adoption in Ukraine. As CEO of CoinsPaid, his goal is to bridge the gap between crypto and traditional businesses.
Generated Image: Midjourney
The post MiCA and the Rise of Merchants’ Trust in the Crypto Payments Industry – Is It Possible? appeared first on The Daily Hodl.
Hot Take
MiCA and the Rise of Merchants’ Trust in the Crypto Payments Industry – Is It Possible?
The implementation of the Markets in Crypto-Assets Regulation (MiCA) by the European Union is set to revolutionize the crypto payments industry. With a unified regulatory framework and increased trust in the sector, merchants will be more willing to adopt crypto payments. The introduction of MiCA will provide global coverage for crypto payment gateways, eliminate inconsistencies caused by national laws, and enable seamless services across multiple European jurisdictions. The industry’s regained trust will force businesses to accept crypto as a competitive advantage. Stablecoins, especially e-money tokens (EMTs), will become the preferred means of payment for low-risk industries due to strict regulations and consumer protection measures. Overall, MiCA will pave the way for greater adoption of crypto payments and strengthen merchants’ trust in the industry.
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