MiCA: What is the European regulation changing for crypto payments?

For several years, cryptocurrencies have continued to grow in popularity, both among investors and traders and consumers. With the rise of Bitcoin, Ethereum, or even stablecoins such as USDC or EURC, the use of cryptoassets in everyday payments is becoming a reality. But faced with this monetary revolution, Europe decided to regulate these practices via a clear legal framework: MiCA regulation (Markets in Crypto-Assets).

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So, what does MiCA actually change for crypto payments? What are the impacts for users and market players like Lyzi, who facilitates the use of cryptocurrencies in real life? We explain everything to you.

MiCA: a historic regulation for the crypto ecosystem

Officially adopted in 2023, the MiCA regulation is a world first. It aims to standardize the rules relating to cryptoassets in all member countries of the European Union. The objective: to guarantee the safety of users, to fight against abuse, while promoting financial innovation.

Concretely, MiCA applies to many types of cryptoassets, including:

• Classic cryptocurrencies (like Bitcoin or Ethereum)
• Stablecoins (pegged to a fiat currency, like EURC or USDC)
• Utility tokens
• And crypto service providers (PSANs)

Crypto payments: what's changing with MiCA

Before MiCA, each European country applied its own rules concerning cryptoasset payments. The result: a lot of legal uncertainty for retailers and users. Thanks to MiCA, several key elements are now harmonized:

1. Clear recognition of stablecoins

MiCA now frames stablecoins (called “asset-referenced tokens”) with strict requirements for reserves, transparency, and regulatory control. This paves the way for wider adoption of stablecoins for payments as they offer stability and security.

At Lyzi, we anticipated this evolution by allowing our users to pay directly with stablecoins in hundreds of points of sale. Learn more here.

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2. Reinforced supervision of service providers

Crypto payment platforms now need to obtain a MiCA license to operate in Europe. This involves:

• A separation of customer funds and the company's cash flow
• Compliance rules (KYC/AML)
• Clear information on costs and risks

This regulation aims to protect consumers and to professionalize the sector.

3. Towards a more massive adoption of crypto payments

With this new framework, retailers and customers benefit from an environment of trust. Cryptocurrency payments are thus becoming more accessible, more secure and more in line with the requirements of financial authorities.

MiCA: an opportunity for retailers and users

Contrary to what some might think, MiCA does not hold back innovation. By providing clarity and security, it offers a favourable framework for the development of cryptoasset payments. This is a real opportunity for European retailers who want to attract young, tech-savvy customers looking for new payment methods.

Thanks to the Lyzi application, it is now possible to pay in Bitcoin, Ethereum or stablecoins in physical stores, while fully respecting MiCA's rules.

Conclusion: MiCA, a turning point for the adoption of cryptocurrencies

The MiCA regulation marks a crucial step in the legitimation of cryptocurrencies in Europe. By supervising players, securing stablecoins and laying the foundations for legal use, it paves the way for the massive adoption of crypto payments.

At Lyzi, we are proud to participate in this transition, by offering a compliant, simple and accessible solution for paying with cryptocurrencies in everyday life.

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