- Alchemy Pay acquires the Money Transmitter License in Arkansas, broadening its financial services.
- The certification is the first of its kind for Alchemy Pay in the United States.
- Major global players such as Coinbase and MoonPay also operate with similar permissions in Arkansas.
Cryptocurrency platform Alchemy Pay has successfully expanded its global reach after securing an essential payment certification in Arkansas. This news was shared with the media on September 20, signaling a noteworthy advancement for the company.
The Money Transmitter License, authorized by the Arkansas Securities Department, equips Alchemy Pay with the capability to provide a plethora of financial services. This encompasses the selling or providing of payment instruments, furnishing stored and prepaid financial solutions, and overseeing the transfer of both traditional and digital currency funds.
With the acquisition of the license on September 13, Alchemy Pay has secured its first regulatory green light in the U.S. A spokesperson for the company expressed that obtaining this license is a key milestone in their expansion across America.
The nod from Arkansas positions Alchemy Pay in line with some of the well-regarded crypto businesses that have the go-ahead to execute cryptocurrency to traditional currency conversions in the state. This list features prominent names such as Coinbase, Block by Jack Dorsey, MoonPay, and the bitFlyer exchange platform.
The attainment of the Arkansas license resonates with Alchemy Pay’s overarching mission to gain regulatory approvals in strategic global markets. Their regulatory presence already spans countries like Indonesia and Lithuania. The firm is actively looking to acquire similar permissions in multiple U.S. states, underlining their dedication to meeting local regulatory guidelines.
Robert McCracken, a key figure within Alchemy Pay, stressed the organization’s dedication to global norms. He revealed that the company aspires to enlarge its presence in the U.S., with the goal of fortifying the connection between the conventional and digital currency sectors.
Originating in Singapore in 2018, Alchemy Pay has established itself as a conduit linking mainstream currencies, such as the U.S. dollar or euro, with popular digital currencies like Bitcoin and Ether. Their services span an impressive 173 countries, reaching regions like Australia, Canada, Hong Kong, the UAE, and India.
In recent developments spotlighting Alchemy Pay’s ascent in the finance sector, the company met the standards laid out by Mastercard‘s Site Data Protection program in June 2023. Furthermore, they were recognized as an accredited service provider by Visa earlier in January 2023.
Crypto Firms Continue Facing Mounting Challenges
The cryptocurrency sector has recently been shaken by the collapse of one of its major platforms, underscoring the inherent risks associated with digital assets lacking standard safeguards. The industry, already in a precarious state with trillions wiped off its market value, has witnessed Bitcoin’s value plunge nearly two-thirds since its late 2021 zenith. The Bank for International Settlements disclosed that as of November 2022, around 75% of investors suffered losses in Bitcoin investments.
Amid these turbulent times, failures of crypto exchanges, hedge funds, and even stablecoins – which are designed to have a consistent value compared to specific assets – have magnified concerns about the integrity of the market, investor protection, and potential systemic risks to the financial system.
Enhanced global regulatory standards, consistently adopted by nations, could alleviate many of these issues, as suggested by two recent reports from the International Monetary Fund (IMF) addressing the crypto landscape. The reports delve into overarching crypto ecosystem concerns and zero in on stablecoins specifically.
Emerging economies are witnessing a shift to crypto assets, primarily dollar-linked stablecoins, creating challenges such as capital outflows and loss of monetary control. For developed countries, the increase in institutional stablecoin holdings poses financial stability risks. Consequently, the IMF emphasizes timely risk management by regulatory bodies without hampering tech advancements.