Alchemy Pay Expands in Asia: South Korea Crypto Boom

Cryptocurrency payment provider Alchemy Pay has expanded its footprint in Asia by acquiring an Electronic Financial Business registration in South Korea. The company invested an undisclosed amount into local e-finance platform EZPG Co., securing the registration governed by the country's Electronic Financial Transactions Act. This move allows Alchemy Pay to offer a wider range of financial services in South Korea, including money transfers, online payment gateway services, and digital asset services.

With the registration, Alchemy Pay can now process crypto asset transactions and provide access to local payment methods such as KakaoPay, PAYCO, and Naver Pay. The company's chief marketing officer, Ailona Tsik, highlighted South Korea's significance as a "pivotal hub in Asia for both traditional finance and digital currency adoption."

South Korea's regulatory environment for cryptocurrencies has been evolving. The government plans to integrate foreign exchange rules into cross-border transactions involving US dollar-pegged stablecoins. Additionally, the country is carefully considering rules for corporate crypto investments.

Beyond payments, cryptocurrencies have gained popularity as investments among South Koreans. As of November 2024, the country's crypto-holder base was estimated at 15.6 million, representing over 30% of the population. The country is home to several crypto exchanges, with Upbit and Bithumb being the most popular. Institutional investors have also been driving cryptocurrency adoption in South Korea, with the country leading Asia in terms of total value received between July 2023 and June 2024, at $130 billion.

Mistrust in traditional financial systems has led South Korean investors to seek out cryptocurrencies as alternative assets. The public's perception of crypto as a viable investment option has been further solidified by the adoption of blockchain technology by major corporations like Samsung and large enterprises in the region, aiming to enhance operational transparency and efficiency.