Alchemy Pay Enters Korea, Crypto Payments Set to Boom

Alchemy Pay, a Singapore-based payment gateway, has made a significant move in the Korean market by securing an Electronic Financial Business Registration. This registration, obtained through an investment in EZPG Co., Ltd., allows Alchemy Pay to offer crypto-to-fiat exchange services in South Korea. The company has also expressed plans to forge new local partnerships with mobile payment and digital wallet services such as Kakao Pay, Naver Pay, and PAYCO, aiming to facilitate seamless crypto payments in the Korean market.

Alchemy Pay's comprehensive coverage spans over 173 countries, with a focus on emerging markets, including Southeast Asia. The company has previously secured various licenses, such as the Australian Transaction Reports and Analysis Centre (AUSTRAC) registration for the Digital Currency Exchange Provider in Australia and the Authorised Payment Institution License. The Korea Electronic Financial Business Registration, required under Article 28 of the South Korea's Electronic Financial Transactions Act (EFTA), 2017, enables Alchemy Pay to provide its crypto payment solutions to individual Koreans and merchants.

The Korean crypto market is rapidly growing, with over 30% of the population involved in digital assets. The country's crypto trading volumes have surpassed traditional equity markets, and the passage of the Virtual Asset User Protection Act in December 2022 has strengthened user safety. According to Yonhap News data, over 30% of Koreans hold crypto, with a total worth of 102.6 million Korean won ($70.3 billion). Alchemy Pay's entry into the Korean market is expected to further bolster crypto payment integration into the daily lives of Koreans.

Alchemy Pay's "Big Move in Korea" comes at a time when the country's top financial leader and KOFIA Chairman Seo Yoo-seok has urged the approval of crypto ETFs, similar to the US SEC. Although there are challenges such as a 20% tax on crypto earnings over KRW 2.5M ($1900), Alchemy Pay's investment in EZPG Co., Ltd. and subsequent registration mark a significant step in the development of the crypto market in Korea.