Wavespace, a neobank focused on Bitcoin services within the Eurozone, has recently announced the MiCA compliance of its ‘self-custodial’ debit card. This innovative fintech company is at the forefront of Bitcoin payment technologies in Europe, featuring support for the Lightning Network and automated Dollar Cost Averaging (DCA) into self-custody accounts.
Traditionally, debit cards within the Bitcoin and broader cryptocurrency sectors have operated by preloading custodial accounts with either bitcoin or stablecoins. This preloading process has often involved on-chain transactions that required time to settle and necessitated manual user input to transfer funds from self-custody wallets or cold storage. Consequently, once the preloaded balance on the card was depleted, further spending was not possible.
Wavespace addresses these limitations through an innovative Bitcoin technology known as Nostr Wallet Connect (NWC). Documented in NIP-47, this protocol enables users to link a service such as the debit card to a self-hosted Lightning node. Users can establish a minimum balance, for instance, $200; whenever the card is utilized via the VISA network, Wavespace automatically draws funds from the user’s self-custodial wallet to replenish the card balance. This mechanism reduces custodial exchange risk while enhancing user exposure to the asset and alleviating the complexities associated with Bitcoin spending.
NWC is a technology developed within the Nostr ecosystem, a technologically advanced segment of the Bitcoin industry that is expanding into social media and other communication protocols.
The Wavespace Neobank
As a progressive neobank, Wavespace provides users with a personal IBAN account, allowing them to transfer fiat currency for Bitcoin purchases. Furthermore, their automated DCA services can be configured to automatically withdraw Bitcoin to a designated address following purchase.
Being MiCA compliant, Wavespace stands out as one of the few remaining Bitcoin exchanges operating in Europe, especially as complex cryptocurrency regulations are being implemented.
Regarding privacy, Wavespace’s deep integration with the Lightning Network offers users access to banking services in a transparent and compliant manner without compromising their payment data on the Bitcoin blockchain. As Lightning payments occur off-chain, there is no singular public record that exposes user data; transactions traverse payment channels between various user services, effectively concealing their public traces. This development presents a significant compromise, balancing the high privacy and cypherpunk ideals foundational to the Bitcoin and cryptocurrency industry while simultaneously facilitating access to traditional financial systems and adhering to stringent regulations prevalent in regions like Europe.
In a recent interview with Bitcoin Magazine, Eivydas Račkauskas, Chief Orange Pill Giver at Wavespace, noted that approximately 70% of the payments executed on the platform utilize the Lightning Network. He also mentioned that the company is exploring the ARK protocol for further innovations in self-custody payments integration. Additionally, Račkauskas indicated that Wavespace is integrated with Lightspark and is poised for expansion into the United States, although he refrained from providing further specifics.
According to Račkauskas, Wavespace has predominantly relied on bootstrapped funding and self-financing, aside from an early investment from Relai in 2025. The company is currently engaged in another round of fundraising.
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