Transak’s US expansion reaches a significant turning point with the Alabama Money Transmitter License as it strives for complete state-level coverage.
The Alabama Securities Commission has granted Transak, a Web3 payments infrastructure provider, its first Money Transmitter License (MTL).
This is a big step for the company’s US expansion as it will allow Transak to handle cryptocurrency transactions in Alabama legally with its new license.
The license from Alabama has enhanced Transak’s already-existing permits for lawful operations in over 46 states. Still, many more licenses are needed before the company can fully service all US users.
US regulatory compliance
Transak is working to guarantee that all cryptocurrency transactions it supports are safe and compliant with US financial regulations. This latest license addition is a more significant effort towards that goal.
Transak must hold state-level licenses to provide its services to US residents as a Money Service Business registered with the Financial Crimes Enforcement Network (FinCEN).
It is anticipated that this process will take some time to reach full US coverage due to the intricacy and variation of state legislation in the US.
Consequences for the cryptocurrency market
With the new license, Transak will be able to provide residents of Alabama with better crypto services, such as quicker transactions and better request fulfillment.
The criteria for regulatory compliance in the US markets are getting stricter, and Transak can meet this growing demand thanks to its most recent license.
States like Alabama will gain from decentralized applications (DApps) and Transak’s services. However, before any changes are made, consumers in states without licenses could wait a while.
first to offer a crypto on-ramp in the US
Transak introduced wire transfers for cryptocurrency to US users on August 6, making it the first fiat-to-crypto on-ramp.
The CEO and co-founder of Transak, Sami Start, stated to that “adding this familiar and secure payment method” was a step toward adopting cryptocurrencies.
Start added that wire transfers are helping customers get more comfortable using cryptocurrency for “everyday transactions” and that “rapid growth” is anticipated.