RockWallet gets another money transmitter license in US

Digital asset service provider RockWallet will be available to more residents in the United States after the company secures a money transmitter license (MTL) in Alabama. RockWallet also secured an MTL for Arkansas in July 2024 and said it has “made steady progress” in securing numerous other MTLs in recent months.

For any Alabama residents who have patiently been waiting for a way to manage digital assets safely and easily… your wait is now over.

We’re proud to share that @rockwallet has obtained a money transmitter license (MTL) in AL.

Let’s go! 👊https://t.co/5yExJKB8d5

— RockWallet (@rockwallet) September 10, 2024

RockWallet said regulatory compliance is a cornerstone of its business strategy and that its commitment to the highest standards in safety, security, and compliance is one of the main factors fueling its growth.

President and Chief Operating Officer of RockWallet, Steve Bailey, said:

“At RockWallet, we believe everyone should have the opportunity to buy, sell, swap, and manage digital assets safely, securely, and with ease. Obtaining this license in Alabama allows us to offer our powerful and easy-to-use functionality to an ever-expanding customer base, ensuring we remain the app of choice for anyone looking to take control of their digital asset journey.”

Last month, RockWallet also achieved SOC 2 Type 1 compliance, a standard for data security controls.

RockWallet is an open-source, non-custodial (i.e., users keep their own private key locally) wallet and asset-swap service. Users can purchase digital assets with credit cards. It supports at least 18 different digital assets, including BSV, BTC, BCH, ETH, DOGE, Tether, USDC, MNEE (ERC-20), LTC, XRP, Worldcoin, and several others. It’s available for mobile devices on the Apple (NASDAQ: AAPL) and Google Play (NASDAQ: GOOGL) stores.

To access all services (buy/sell and swap), users must create and verify accounts. The company also launched RockWallet Pro in March 2024—an opt-in service available to all customers within the app, but which comes with additional trading analysis tools, charts, expedited BSV deposits and withdrawals, and a “VIP trading desk” for large orders.

RockWallet’s focus on compliance is necessary in today’s digital asset world, but it comes with costs to the company. MTLs in the United States and international jurisdictions have their own rules, and RockWallet must gradually roll out services to new regions once they satisfy local regulators.

Bailey added that utility and user experience are also essential parts of RockWallet’s mission and vital to finding customers outside the digital asset enthusiast world. New or advanced features shouldn’t come at the expense of quality or security, he added.

“When the customer decides to use RockWallet, it should work, first time, every time,” he previoulsy said on CoinGeek Backstage.

What are money transmitter licenses in the US?

Under U.S. federal law, any business entity whose activities include money transfer services or payment instruments must apply for MTLs according to each state’s definition of those activities.

There is no nationwide mechanism for doing this, so companies face the arduous task of applying for money transmitter licenses in 49 states individually. Once they have one, they may offer their services to residents of that state.

MTL laws have come into focus more frequently in recent years thanks to the emergence of blockchain, digital assets, fintech, and other payment technologies. Proponents have long argued that this process has hindered the growth of blockchain and digital asset businesses in the United States, but to date, the only option for money services firms is to embark on this long journey.

The requirements and application process differ from state to state. Money transmitter licenses are not required in Montana, and while this has seen Montana become a magnet for blockchain and digital asset startups, these businesses must still apply to all other states to offer services to U.S. residents.

Watch: RockWallet is the go-to app for everyone