Transak secures Alabama license, expands US crypto services
Transak, a Web3 payments infrastructure provider, has secured a Money Transmitter License (MTL) from the Alabama Securities Commission.
The license will enable Transak to legally facilitate cryptocurrency transactions in Alabama, marking a step for the firm’s expansion into the United States.
Despite operating in 46 US states through third-party providers, Alabama is the first US state in which Transak has received an MTL.
Regulatory compliance in the US
The latest license addition is part of Transak’s broader effort to comply with US financial regulations to ensure the safety and compliance of all crypto transactions it facilitates.
Related: Transak becomes first US crypto on-ramp to enable wire transfers
Transak must obtain state-level licenses to offer its services to US residents as a registered Money Service Business with the Financial Crimes Enforcement Network.
Given the complexity and variance in state laws in the US, this process is expected to take some time before complete US coverage is achieved.
Related: Immutable expands Web3 gaming payment options with Transak integration
Implications for the crypto market
The new license will allow Transak to offer improved crypto services to Alabama residents, including faster transactions and enhanced request fulfillment.
The US markets’ regulatory compliance requirements are becoming increasingly stringent, and this latest license helps Transak meet the regulatory demand.
Decentralized applications integrated with Transak’s services will benefit states like Alabama.
Related: UK’s FinProm a welcome change, but challenge persists — Transak compliance head
First to provide US crypto on-ramp
On Aug. 6, Transak became the first fiat-to-crypto on-ramp , introducing crypto wire transfers for US users.
Sami Start, the co-founder and CEO of Transak, told Cointelegraph then that “adding this familiar and secure payment method” was a step toward adopting crypto.
Start also said that “rapid growth” is expected as users become more comfortable using crypto for “everyday transactions,” with wire transfers pushing toward that goal.
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