Civitai Introduces Crypto Payments for Buzz Tokens
Civitai has begun accepting cryptocurrency payments for its Buzz tokens after its previous credit card processor ceased operations due to concerns over AI-generated adult content. The platform now supports various cryptocurrencies, including USDC, USDT, Ethereum, and Dogecoin, although Bitcoin is notably excluded due to its high transaction fees. This development sheds light on the increasing financial challenges faced by NSFW and AI platforms, a trend reminiscent of the adult content industry.
New Payment Options Following Processor Termination
Civitai, recognized as the largest repository for generative AI models globally, implemented crypto payment options this month following the termination of its credit card processing services. This change allows users to purchase Buzz tokens, which are the platform’s virtual tokens not associated with Web3. Users can now make payments using USDC, USDT, Litecoin, Ethereum, TRON, Solana, Dogecoin, and Shiba Inu through the NowPayments processor, while Bitcoin has been excluded due to its costly fees.
Enhanced Security and Speed for Users
Civitai expressed its enthusiasm for the new crypto payment feature, highlighting its secure and convenient nature for users seeking Buzz tokens. In its implementation guide, the platform recommended using USDC on the Base network, which offers zero gas fees and processes transactions within a swift 15-25 seconds. While any cryptocurrency transaction is acceptable, users are not required to utilize Coinbase for their purchases. The platform streamlines transactions, allowing users to receive Buzz tokens almost immediately after blockchain confirmation. Civitai supports most wallets compatible with Ethereum but suggests Coinbase for ease of use.
Cost-Effective Transactions Compared to Traditional Methods
The company has established a flat fee of $1 for crypto transactions, a figure significantly lower than conventional payment processing fees. Civitai reassured users about security, stating that it uses a reliable payment processor for crypto transactions and does not store wallet information on its servers. This shift to cryptocurrency followed the termination of its credit card processing services on May 23, with the company noting that recent policy changes were not sufficient to satisfy the former processor. Civitai is actively pursuing negotiations with new credit card providers who are open to working with NSFW content under specific conditions.
Challenges for NSFW Platforms in Financial Services
Civitai’s situation is not an isolated incident; it is part of a broader trend where payment processors are withdrawing support from NSFW businesses. The platform joins numerous others in the adult entertainment sector that have adopted cryptocurrencies as a way to navigate restrictions imposed by traditional payment processors. A notable example is Pornhub, which turned to Bitcoin for premium services after losing support from Visa and MasterCard in December 2020, now offering various crypto options through the payment processor Aylo. LiveJasmin was an early adopter, embracing Bitcoin back in 2015 due to its decentralized and anonymous characteristics, which appealed to privacy-conscious consumers.
Industry Shifts Amid Regulatory Pressures
SpankChain also made strides in this area by launching SpankPay, a payment processor tailored for adult content providers. This blockchain-based solution aimed to facilitate low-cost transactions while addressing the challenges posed by traditional financial institutions. However, due to increasing regulatory pressures, the SpankChain team recently shifted its focus from product development to advocacy and strategic partnerships. Payment processors often restrict NSFW businesses due to regulatory concerns and reputational risks, with major providers like PayPal, Stripe, and Square outright banning adult content. Visa and MasterCard permit member banks to deem such businesses “high risk,” contributing to the challenges faced by the sector.
Regulatory Landscape Impacting AI Content
The same issues extend to generative AI platforms. Civitai highlighted that certain payment companies classify these platforms as high risk, particularly when they allow user-generated adult content, even if it is legal and properly moderated. This policy decision, as the company noted in a previous blog post, led to the severance of its payment processing services. With approximately 3.2 million users, Civitai now offers crypto payment options for Buzz tokens while actively seeking new credit card processing solutions. In response to regulatory demands, the platform has recently tightened its content policies, banning real-person likeness content to comply with the newly enacted U.S. Take It Down Act and the EU’s AI Act.
Adapting to a Rapidly Changing Regulatory Environment
The Take It Down Act, signed into law recently, establishes strict penalties for publishing non-consensual intimate images, mandating that platforms remove such content within 48 hours of receiving notification. Civitai acknowledged the increasingly stringent regulatory environment, which is evolving swiftly across various jurisdictions. As a result, the platform has removed deepfake representations of celebrities, fan art, and other types of kinks to remain compliant with the new legal landscape.
User Reactions to Crypto Payment Integration
Responses to Civitai’s adoption of cryptocurrency as a solution have been mixed. While some users have welcomed the change, others express skepticism about its effectiveness. A segment of the user community has taken to archiving content through platforms like r/CivitaiArchives and alternative sites. Despite these varying opinions, the majority of the user base remains supportive of Civitai during this transitional phase.
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