Transak has secured regulatory approval from its 46th state in the country, pushing it closer to receiving an MSB license from FinCEN.
Crypto on/off ramp infrastructure and service provider Transak has increased its foothold in the US crypto market by securing the Money Transmitter License (MTL) in Alabama. The state’s financial regulator, the Alabama Securities Commission, approved the registration. That makes Alabama the 46th state to accommodate Transak’s services. A few remain, but it looks like the firm may take a while before accumulating licenses from all the states in the country due to the complexity associated with each.
Once Transak obtains licensing from all states, it can register as a Money Services Business (MSB) with the federal regulator Financial Crimes Enforcement Network (FinCEN). Moreover, its efforts to register with every state indicate the level of compliance it showcases to prevent money laundering and criminal financing activities that many firms before it have glanced over.
For now, its entry into Alabama will allow retail users to buy and sell crypto through its infrastructure, either directly or through exchanges and other platforms that rely on its application programming interfaces (APIs). The US has always exhibited stringent checks to green-light crypto businesses to service its citizens. Such a high threshold ensures firms that do not meet high anti-money laundering (AML) requirements do not operate in the region. Transak’s expansion in the country places it in a niche of crypto firms with the advantage of servicing US users.
Transak Became the First On/Off Ramp Service Provider to Offer Wire Transfer Capabilities in the US
The company behind crypto’s arguably most known on/off ramp service has also made other massive moves in America. It became the first solution of its kind to bring wire transfer capabilities to the country. With that, it enabled Americans to add crypto balances to their wallets and exchange accounts through wire transfers—one of the most familiar and secure payment methods.
Unlike using credit cards to buy crypto, which comes with hindrances like limits on how much crypto one can buy, wire transfers will help users go past them. In fact, Transak itself witnessed a four-fold increase in its platform’s usage in the UK after introducing wire transfer capabilities there. With the capabilities now offered in the US and the firm’s expanding regulatory approvals, Transak can achieve similar, if not more, adoption in the country.
