It’s a fresh start to the new year, and with December 30th, 2024 now behind us, the EU’s Markets in Crypto-Assets (MiCA) framework has kicked in for stablecoins like USDC and USDT. Here’s a quick rundown of what small businesses need to know—especially if you’re taking payments in these popular tokens.
1. Accepting Stablecoins Directly
If you receive USDC or USDT via direct wallet-to-wallet transfers (e.g., a “Connect Wallet” button on your site or sharing a MetaMask address):
- No MiCA License Required: You’re not issuing the stablecoin or providing a payment service to others—you’re just accepting tokens.
- Keep Records: Even wallet-based transfers can trigger tax or AML requirements. Maintain transaction logs and watch for large-sum rules in your jurisdiction.
- Refunds Are Tricky: Crypto transfers are final on-chain, so make sure customers know how refunds or disputes are handled (if at all).
2. Working With a Payment Gateway
If you partner with a crypto payment service:
- Check Provider Compliance: Some gateways might adjust fees or verification steps to comply with MiCA’s new rules.
- Potential Service Interruptions: If Tether (USDT) or Circle (USDC) faces licensing hurdles, certain payment providers could halt support temporarily.
3. Tether vs. Circle in 2025
- Tether (USDT): Tether’s path to MiCA compliance isn’t fully clear; there’s a possibility EU exchanges or processors might reduce support if Tether doesn’t meet the new standards.
- Circle (USDC): Circle has been more proactive about licensing—likely making USDC a “safer” option to continue using in the EU, but final confirmations are still rolling out.
For small businesses, this means keeping an eye on potential changes in fees, availability, or transaction policies over the coming months.
4. Quick Tips
- Stay Informed: Follow announcements from Tether and Circle for EU-related updates.
- Diversify: If one stablecoin faces restrictions, being able to accept or pay in another token can help you avoid disruptions.
- Maintain Compliance: Even if you don’t need a MiCA license yourself, taxes and anti-money laundering rules still apply.
- Watch for Local Nuances: Individual EU Member States might introduce additional regulations or guidance on stablecoin usage for merchants.
Wrapping Up
Now that the key MiCA date has passed, issuers and service providers bear the brunt of compliance obligations. As a small business, you generally remain free to accept stablecoin payments—but stay aware of changes in exchange policies, gateway support, and potential new fees. A bit of vigilance ensures you can keep benefiting from faster, borderless transactions as stablecoins settle into the new regulatory landscape.
Disclaimer: This post is for informational purposes only. Consult with legal, tax, or financial professionals for advice specific to your situation.