According to latest reports, Civitai, the hub for generative AI models, has switched to crypto payments after its credit card processor stopped services due to AI-generated NSFW content. The platform now accepts 8 cryptocurrencies including Ethereum, USDC and Dogecoin to buy Buzz tokens
- From Payments Freeze to Turning To Crypto
- Navigating Legal and Regulatory Changes, Mixed Community Reactions
- AI, Content Moderation, and Financial Services
- Conclusion: A Pattern of Fintech Resistance
- FAQs
- What is Civitai?
- Why did Civitai switch to crypto payments?
- What cryptocurrencies does Civitai accept?
- How is Civitai addressing regulatory concerns?
- How long does it take for crypto payments to process on Civitai?
- Glossary
At the time of writing, Civitai confirmed its new crypto payment system, implemented through NowPayments, is fast and low fee.
“We’re excited to introduce crypto payments for Buzz. This gives you a secure and convenient way to get the Buzz you need”
Civitai said in its May 22 announcement. They recommended USDC on the Base network for gas free, instant transactions but all supported cryptocurrencies are valid payment methods. Bitcoin was not included in the list due to high transaction costs.
From Payments Freeze to Turning To Crypto
Civitai’s turn to crypto payments was triggered by its former credit card processor stopping services on May 23. According to the company,
“Recent policy updates were not sufficient to satisfy the former processor” despite Civitai’s efforts to comply with the changing regulations.
Reports say the company is in talks with other credit card providers that might accommodate businesses that handle AI-generated explicit content, but with stricter guidelines.
This is not new for adult content platforms that turned to crypto payments after being de-platformed by Visa and Mastercard due to compliance issues.
“The parallels between Civitai’s experience and that of SpankChain shows the increasing scrutiny faced by NSFW and generative AI content providers” said fintech analyst Grace Moreno of CryptoInsight.
Navigating Legal and Regulatory Changes, Mixed Community Reactions
Civitai’s move comes as the legal terrain around AI generated and adult content is getting tighter globally. The US Take It Down Act signed this month imposes severe penalties including up to 3 years in prison for distributing non-consensual intimate imagery.
The European Union’s AI Act also requires stricter controls over AI generated content, putting pressure on platforms like Civitai to overhaul their moderation policies. To comply with these regulations, Civitai has banned real person likenesses, celebrity deepfakes and certain fan-art depictions, and is exploring sustainable financial alternatives.
Civitai’s crypto payments has received mixed reactions from its 3.2 million users. Some are happy with the flexibility and privacy of crypto payments while others are concerned about the growing challenges faced by platforms that handle AI generated NSFW content. Some users have moved to other platforms or joined archival communities like r/CivitaiArchives. But most Civitai users are sticking with the platform during this transition.
AI, Content Moderation, and Financial Services
Civitai’s problems show the complex intersection of AI generated content, content moderation and financial services. Payment processors often restrict services to NSFW businesses due to regulatory pressure and reputation concerns. Mainstream providers like PayPal, Stripe and Square ban adult content entirely, while Visa and MasterCard allow member banks to refuse such business and label it as “high risk”.
Civitai’s experience reveals the difficulties AI platforms face when hosting user generated mature content. Despite having stricter content policies in place, the platform still can’t find reliable payment processing services. Crypto payments is a quick solution but the long term sustainability of that is unclear.
Conclusion: A Pattern of Fintech Resistance
Civitai’s turn to crypto payments by platforms deemed “high risk” by mainstream financial institutions is another pattern of crypto adoption. It shows both the potential of crypto as a financial lifeline and the challenges NSFW and AI businesses face in getting traditional payment solutions. “Generative AI platforms, especially those that allow user generated explicit content, are often considered high risk by payment providers regardless of legality” Civitai said in a previous blog post.
As the platform waits for a resolution with credit card processors, its adoption of crypto payments allows it to keep revenue flowing while navigating an increasingly complex regulatory ups and downs.
FAQs
What is Civitai?
Civitai is the world’s largest generative AI model-sharing platform, a model repository for creators.
Why did Civitai switch to crypto payments?
Civitai switched to crypto payments after its credit card processor dropped support due to AI generated NSFW content.
What cryptocurrencies does Civitai accept?
Civitai accepts USDC, USDT, Litecoin, Ethereum, TRON, Solana, Dogecoin and Shiba Inu but not Bitcoin due to high transaction fees.
How is Civitai addressing regulatory concerns?
The platform has tightened content policies to comply with the U.S. Take It Down Act and the European Union AI Act, banning certain explicit or likeness based content.
How long does it take for crypto payments to process on Civitai?
Payments clear in minutes, Buzz tokens available after blockchain confirmation.
Glossary
Civitai: A generative AI model-sharing platform.
Buzz: Civitai’s in-platform currency.
NowPayments: Crypto payment processor.
Take It Down Act: U.S. law for non-consensual explicit content.
AI Act: European law for AI systems and content.
Sources
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