Authorisation under the EU’s Markets in Crypto-Assets (MiCA) regime enables Malta-based Payhound to broaden its regulated crypto and stablecoin conversion services
Payhound has obtained authorisation as a crypto-asset service provider (CASP) under the EU’s Markets in Crypto-Assets (MiCA) regime, positioning the Malta-based firm to scale its crypto and stablecoin settlement services across the bloc’s regulated sectors, including iGaming.
The licence, issued by the Malta Financial Services Authority (MFSA), allows Payhound to passport its services across EU member states under a single regulatory framework, rather than maintaining a patchwork of national permissions. MiCA introduces a harmonised authorisation regime for CASPs, enabling firms licensed in one member state to serve clients across the EU, subject to notification requirements and ongoing supervision.
Payhound said it is part of the early wave of providers to be fully regulated under MiCA, joining a relatively small cohort of authorised CASPs at this stage of the regime’s rollout.
From Malta’s VFA regime to MiCA CASP
Before MiCA came into force for service providers, Payhound operated under Malta’s Class 3 Virtual Financial Assets (VFA) licence. That framework has now been folded into the EU’s new regime, with existing firms given a transitional window to migrate into MiCA authorisation.
By moving into the CASP regime, Payhound now sits under a clearer set of EU-level rules for activities such as:
- Transferring crypto-assets on behalf of clients
- Executing orders for crypto-assets
- Providing custody and administration of digital assets
- Exchanging crypto-assets for funds and for other crypto-assets
These functions are central to the firm’s business model, which focuses on converting crypto and stablecoin balances into fiat currencies for merchants and platforms which manage frequent, cross-border settlement flows.
Focus on iGaming, affiliates and high-volume cross-border flows
Payhound’s core client base is in iGaming and affiliate marketing, where operators and programmes often run high-volume settlement cycles spanning multiple markets. The firm’s proposition centres on enabling instant or near-instant conversion of crypto and stablecoin deposits into fiat, as well as handling affiliate commission payouts and operational settlements in a single flow.
Alongside iGaming, Payhound has also targeted other industries with significant cross-border payment needs, such as online commerce and higher-value goods, where merchants want to accept or hold digital assets but settle their books in fiat currency.
MiCA’s passporting framework is expected to simplify how these businesses select and manage crypto partners. Rather than vetting separate local regimes, EU-regulated operators can increasingly look to a single licence and supervisory standard when working with CASPs on deposits, pay-outs and treasury conversion.
“Achieving our MiCA licence reinforces the confidence operators and affiliates place in us,” said Elton Dimech, Managing Director at Payhound. “MiCA creates a clearer environment across Europe and supports the way our clients manage their crypto and stablecoin payments.”
Regulatory and operational signalling
For payment and risk teams inside gambling and other high-risk verticals, MiCA authorisation is likely to become a key differentiator when assessing crypto providers. The framework imposes requirements on governance, capital, risk management and the segregation of client assets, as well as stricter expectations around transparency and disclosures for digital asset services.
Payhound also holds ISO 27001 certification for information security, which is increasingly seen as a baseline expectation for vendors processing high-value or sensitive payment data. Combined with MiCA supervision, this will be marketed as part of its risk and compliance story for operators facing tighter regulatory scrutiny around source of funds, AML controls and technology outsourcing.
As more EU-focused operators explore the role of stablecoins and crypto-denominated flows within their payments stack, the number of MiCA-licensed CASPs is expected to grow. For now, however, the regime remains in its early stages, and firms like Payhound that have completed the transition from legacy national regimes will be watched closely by both regulators and industry as a test case of how MiCA operates in practice.
