Crypto as a Payment Method

Webinar by The Soltesz Institute with Viktoria Soltesz & Anna Agu

Crypto was meant to replace banks—faster, cheaper, and borderless. At least, that’s what the hype says. But is that really the case? The reality is different. Crypto payments face legal scrutiny, compliance requirements, and operational challenges that few businesses truly understand.

In this webinar, Viktoria Soltesz the Founder of The Soltesz Institute talked to Anna Agu, a legal expert specializing in crypto regulation, to break through the myths and get to the facts. Crypto payments may offer advantages, but they also bring risks—especially for businesses that fail to plan their compliance setup.

The Origins: What Was Crypto Meant to Be?

Bitcoin wasn’t created as an investment asset or a tool for “get rich quick” speculation. The original idea was simple: a peer-to-peer payment system that bypasses banks and central authorities. But as crypto gained popularity, its use shifted. Instead of becoming a universal digital currency, Bitcoin became more of a speculative asset and a tool to bypass regulations, sometimes facilitating various scams.

Stablecoins emerged as a practical alternative to cash, providing the benefits of crypto without the price volatility. Businesses worldwide now use stablecoins for international transactions, avoiding traditional banking regulations and restrictions, which is very dangerous to the current financial system.

Today, regulation has caught up. What was once a lawless, anonymous currency is now subject to strict legal controls to be safely used in global financial flows.

The Events That Shaped Crypto Regulation

As history shows, regulators don’t act unless something forces their hand. Crypto wasn’t taken seriously until major incidents exposed its risks. Five key events shaped today’s regulations:

1. Mt. Gox Hack (2014) – One of the biggest Bitcoin exchanges collapsed, proving that crypto platforms were vulnerable.
2. Silk Road Shutdown (2013) – Authorities cracked down on crypto’s use in illegal markets, linking it to tax evasion and crime.
3. AML5 Directive (2020) – The EU introduced strict anti-money laundering rules for virtual currencies.
4. ICO Scams (2017-2018) – The rise of fraudulent Initial Coin Offerings (ICOs) triggered regulatory intervention.
5. MICA Regulation (2024) – The EU’s latest framework now sets clear rules for virtual asset providers.

For businesses, these changes are beneficial: crypto transactions are no longer in a legal gray area and can now be trusted. However, if you accept crypto payments, you must follow compliance rules just like any other financial operation.

The Compliance Problem: Can Businesses Keep Up?

Crypto regulation isn’t the same worldwide. Some countries have outright bans, while others allow it but impose heavy restrictions. Even within the EU, national interpretations of MICA vary. This inconsistency creates serious risks for businesses handling digital assets and operating internationally.

Accepting crypto payments without a proper compliance and banking strategy is reckless. If a company receives crypto from a sanctioned entity, it could face severe penalties. Also, companies can easily jeopardize their relationship with high-street banks that have a lower risk appetite for crypto, which can result in closed accounts—even after several years of successful partnerships. Banking relationships are among the most valued assets in a company. Therefore, any business handling crypto, even just for accepting payments from clients, must implement:

• KYC (Know Your Customer) checks – Verifying the identity of crypto senders.
• AML (Anti-Money Laundering) measures – Screening transactions to detect suspicious activity.
• Regulated crypto payment providers – Ensuring transactions meet compliance requirements.

Many companies assume crypto operates outside the traditional banking system, but this is completely incorrect. Anytime crypto is used as a form of payment, it falls under traditional taxation and record-keeping requirements, just like any other asset. If you process crypto, you’re subject to financial laws, just like any other currency.

Crypto vs. Banks: What’s Really Different?

The gap between banks and crypto payment processors is shrinking as crypto becomes a vital part of the financial system, just like traditional money. Licensed crypto payment companies now follow strict compliance rules, just like traditional financial institutions. The main differences lie in:

• Transaction speed – Crypto payments settle faster than bank transfers, especially for cross-border transactions. However, this advantage is fading with the rise of faster and instant payment systems globally.
• Costs – Crypto fees can be lower than traditional banking fees, but they vary depending on the network. However, local payments are often free within traditional banking rails.
• Regulation – Banks follow established legal frameworks, while crypto laws are still catching up.

New rules like the Travel Rule require crypto platforms to record recipient details, making anonymity a thing of the past. Crypto is no longer the “wild west” of payments—for good reason, as it has been widely used for tax evasion and other criminal activities.

Consumer Protection: Are Crypto Users at Risk?

One of the biggest myths about crypto is that it’s completely decentralized and unregulated. In reality, most crypto users rely on exchanges, wallets, and payment processors—all of which are now subject to regulations and must be centralized for accountability.

To stay protected, consumers must:

• Use licensed crypto services – Unregulated platforms increase fraud risk.
• Check for transparency – Hidden fees, unclear terms, and lack of customer support are red flags.
• Be cautious with transactions – Unlike banks, crypto transactions cannot be reversed if something goes wrong.

The EU is introducing registries of regulated virtual asset service providers, making it easier to verify trusted platforms. However, users are ultimately responsible for protecting their assets and understanding the risks of different providers.

The Future of Crypto & Regulation

Central Bank Digital Currencies (CBDCs) are on the rise, bringing blockchain technology into government-controlled financial systems. Although not decentralized, CBDCs represent a form of digital money with self-executing contracts attached.

For businesses, the real issue isn’t whether crypto will survive—it’s whether they’re prepared to handle it within the ever-changing regulatory landscape.

Ignoring compliance isn’t an option anymore. Crypto transactions are no longer an unmonitored way to transfer value and avoid taxes. Everything used as a form of exchanging value is now being monitored, regulated, and taxed. Businesses that fail to adapt will face fines, frozen accounts, or even criminal liability.

The key takeaway? Crypto payments aren’t the problem—poor planning is.

Watch the Full Webinar

To learn more about crypto regulation and payment strategies, watch the full webinar at The Soltesz Institute: https://solteszinstitute.com/course/crypto-as-a-payment-method-regulation-and-risk

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