Alchemy Pay expands into Korea with e-finance license

Alchemy Pay has secured an Electronic Financial Business registration in South Korea, expanding its ability to offer financial services in the country.

This was achieved through a strategic investment in EZPG Co., a local e-finance platform.

The registration is governed by South Korea’s Electronic Financial Transactions Act.

Companies with this registration can provide a range of financial services, including money transfers, online payment gateway services, and digital asset services.

Alchemy Pay can now process crypto asset transactions and provide access to local payment methods such as KakaoPay, PAYCO, and Naver Pay.

Ailona Tsik, Alchemy Pay’s chief marketing officer, identified South Korea as a “pivotal hub in Asia for both traditional finance and digital currency adoption.”

The company's expansion aligns with South Korea's increasing regulation of cryptocurrency transactions.

The government plans to integrate foreign exchange rules into cross-border transactions involving US dollar-pegged stablecoins and is considering rules for corporate crypto investments.

South Korea has a significant crypto-holder base, estimated at 15.6 million, or over 30% of the population, in November 2024.

Institutional investors are also driving cryptocurrency adoption in the country.

South Korea is Asia’s largest crypto market in terms of total value received.

Between July 2023 and June 2024, the value of cryptocurrency received in South Korea was $130 billion, leading all Asian countries.

"Mistrust in traditional financial systems has led investors to seek out cryptocurrencies as alternative assets," a local exchange representative told Chainalysis.

The adoption of blockchain by major corporations like Samsung and large enterprises in the region is solidifying the public’s perception of crypto as a viable investment option, as these corporations enhance operational transparency and efficiency.