Civitai Introduces Crypto Payments Following Payment Processor Withdrawal
Civitai has recently announced that it will now accept cryptocurrency payments for its Buzz tokens after the withdrawal of its credit card processor, which ceased operations due to the platform’s AI-generated explicit content. The supported cryptocurrencies include USDC, USDT, Ethereum, Dogecoin, and several others, although Bitcoin has been excluded from the list due to its high transaction fees. This development underscores the increasing financial pressures faced by platforms dealing with NSFW (not safe for work) and AI-generated content, mirroring challenges observed in the adult entertainment sector.
Civitai’s Shift to Cryptocurrency Payments
As the largest repository of generative AI models globally, Civitai made the decision to implement crypto payments this month after losing its credit card processor on May 23. This option allows users to purchase Buzz tokens, which are virtual tokens not based on Web3 technology. The AI model-sharing platform now accepts several cryptocurrencies through the payment processor NowPayments, which includes USDC, USDT, Litecoin, Ethereum, TRON, Solana, Dogecoin, and Shiba Inu, while opting not to support Bitcoin due to its transaction costs.
Secure and Efficient Transactions
In a guide published on May 22, Civitai expressed enthusiasm about the introduction of crypto payments for Buzz, emphasizing that this solution provides a secure and user-friendly method for acquiring tokens. The platform specifically recommends using USDC on the Base network, which does not impose gas fees and typically processes transactions within 15 to 25 seconds. Users can complete transactions quickly, often receiving their Buzz tokens immediately after the blockchain confirms the payment. Although the site supports a variety of Ethereum-compatible wallets, it highlights Coinbase as a straightforward option for users.
Cost-Effective Payment Solutions
Civitai has established a flat fee of $1 for cryptocurrency purchases, a significant reduction compared to conventional payment processing fees. The company reassured users that their wallet information is securely handled by a reliable payment processor, ensuring that no data is stored on Civitai’s servers. This shift to crypto payments was necessitated after the credit card processor ended its service, citing insufficient policy updates as the reason for their decision.
Challenges Faced by NSFW Platforms
Civitai’s experience is not isolated; many NSFW businesses have encountered similar challenges with payment processors. The move to cryptocurrency aligns with a growing trend among adult entertainment companies seeking to bypass restrictions imposed by traditional financial services. Notably, Pornhub’s adoption of Bitcoin followed a loss of support from Visa and MasterCard in December 2020, and the platform now accepts a range of cryptocurrencies for premium services. Similarly, LiveJasmin was an early adopter of Bitcoin, recognizing its appeal among privacy-conscious users.
Industry-Wide Regulatory Pressures
The adult industry has seen various attempts to create dedicated cryptocurrency payment solutions, such as SpankPay, which was designed to facilitate low-fee transactions for adult content providers. However, due to increasing regulatory scrutiny, SpankChain has shifted its focus toward advocacy and strategic partnerships rather than product development. Payment processors often impose restrictions on NSFW businesses due to regulatory concerns and reputational risks, with mainstream providers like PayPal, Stripe, and Square generally banning adult content altogether.
Implications for AI Content Platforms
The same challenges are now affecting platforms that host AI-generated content. Civitai highlighted that some payment providers classify generative AI platforms as high risk, particularly when they allow user-generated mature content, even if such content is legal and moderated. This classification led to the termination of services, as stated by the company in a previous blog post. Currently, Civitai’s 3.2 million users can utilize cryptocurrency to purchase Buzz tokens while the platform actively seeks new credit card processors.
Regulatory Compliance and User Reactions
In light of stricter content policies, Civitai has recently banned real-person likeness content to comply with the U.S. Take It Down Act and the European Union AI Act. The Take It Down Act, enacted this month, imposes severe penalties for publishing non-consensual intimate imagery, requiring platforms to remove such content within 48 hours of notification. Civitai acknowledged the rapidly evolving regulatory landscape and has adjusted its content policies accordingly, removing various types of contentious content to maintain compliance.
User Sentiment Toward Crypto Adoption
Reactions to Civitai’s adoption of cryptocurrency as a solution have been mixed, with some users expressing support for the move, while others remain skeptical. A segment of the user base has begun archiving content through communities like r/CivitaiArchives and alternative platforms. Nevertheless, a significant portion of the user community continues to show loyalty to Civitai amid these changes.
