Nuvei Gets OK to Offer Crypto Services in EU

Nuvei received approval to operate under the European Union’s new regulatory framework for cryptocurrency.

The Canadian payments got a Crypto-Asset Service Provider (CASP) license under the EU’s Markets in Crypto-Assets Regulation, according to a Wednesday (Dec. 17) press release.

This allows Nuvei to offer regulated crypto-asset services throughout the EU and “passport those services across EU member states under a single regulatory regime,” making it easier for merchants and platforms that want to deploy crypto-enabled payment and settlement capabilities in multiple European markets, the release said.

The license allows Nuvei to offer crypto storage and administration, transfers and the exchange of crypto assets into funds, woven into its larger global payments infrastructure, according to the release.

“This authorization marks an important milestone in the convergence of payments and digital assets,” Nuvei Chair and CEO Phil Fayer said in the release. “…Operating under this framework allows us to help customers move value across crypto and traditional payment rails with confidence, consistency and scale.”

Nuvei was also granted a Payment Institution license, allowing it to provide services related to electronic money tokens (EMTs), the release said.

Put together, these licenses permit Nuvei to support crypto-asset, EMT and fiat-based payment and settlement flows “through a unified, regulated platform,” per the release.

In September, Bryce Jurss, vice president, head of Americas, digital assets at Nuvei, discussed with PYMNTS the emergence of stablecoins as a critical layer for B2B transactions.

“It’s been accelerating a lot in the last few years, especially this year with new regulations coming in the U.S. and prior year in the EU,” Jurss said. “That guidance has helped really shape blockchain as an infrastructure and stablecoins on that blockchain infrastructure.”

Despite the momentum around blockchain, however, there are some misconceptions about what the technology can and can’t do.

“One misconception is around the idea that stablecoins magically fix all of these problems that have traditionally made it difficult to do cross-border payments,” Jurss said. “I don’t think that’s necessarily true” because, in some cases, costs can actually go up.

“The encouraging part is that there’s been a real kind of product market fit around payments and stablecoins,” he added. “The real opportunity isn’t about chasing the buzzwords, but it’s more about being disciplined, identifying where stablecoins truly outperform a so-called legacy payment system.”