Transak, a Web3 payments infrastructure provider, has secured its first Money Transmitter License (MTL) from the Alabama Securities Commission.
The new license will enable Transak to legally facilitate cryptocurrency transactions in Alabama, marking a significant step for the firm’s expansion into the United States.
Transak has already been licensed for legal operations in almost 46 states, strengthened by the Alabama license, but many licenses remain before the firm can fully serve all US users.
Related: Transak becomes first US crypto on-ramp to enable wire transfers
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.
As a registered Money Service Business with the Financial Crimes Enforcement Network (FinCEN), Transak must own state-level licenses to offer its services to US residents.
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 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 that growing regulatory demand.
Decentralized applications (DApps) integrated with Transak’s services will benefit states like Alabama. However, for states without licenses, users may wait some time before improvements can be made.
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 wire transfers for crypto 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 forward for adopting crypto.
Start also explained 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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