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In the United States, most states classify anyone who receives and transmits money to another location by any means as a “money transmitter.” But while they might agree on what to call these organizations, each state has their own specific requirements and regulations for these money transmitters.
In addition to that, at the federal level, FinCEN (Financial Crimes Enforcement Network) has their own regulatory requirements and registration processes that money transmitters must also follow. However, being compliant on the federal level does not guarantee compliance in each state, and being compliant in one state does not mean a company is compliant in another. The complexities stemming from regulatory divides between federal and state agencies often make it difficult for money transmitters to expand, conduct business, and make changes to existing processes.
The costs associated with registering and becoming compliant federally and in all 50 states can run up to an estimated $1-$1.5 million dollars and can take up to two years. But the real cost for companies isn’t just the money. It’s the distraction and time spent away from focusing on building their product.
San Francisco-based Wyre has a new solution to solve this problem and to help companies interact with the traditional banking world.
Go-to-Market Time: From 6 Weeks to 6 Hours
After five years of building a legally compliant infrastructure in the U.S. and abroad, Wyre’s new solution will allow blockchain companies to leverage their infrastructure via an API.
Commenting on their new API, CEO and co-founder of Wyre Michael Dunworth said, “We are taking the first step toward allowing the developer community to tap this infrastructure of compliance, banking, and liquidity through one API, so that they can focus on building products that progress the ecosystem. Ideally, we can bring the go-to-market time from 6 weeks to 6 hours.”
Instead of going through the costly regulatory process on their own, decentralized exchanges and apps can use Wyre’s API to compliantly onboard new customers as verified by a regulated money services business in Wyre, all in 10 lines of code.
In addition to overcoming the costly challenges of regulatory compliance, Wyre’s API also offers the developer community access to fiat on-ramps and off-ramps as part of Wyre’s global banking settlement corridors. It also offers aggregated liquidity from OTC desks and reputable exchanges, with best pricing and execution all brought into Wyre’s API.
The Wyre Infrastructure: Compliance and Liquidity
Wyre has been around since 2013 and is one of the original Crypto 1.0 companies. After trading over $3.5 billion in cryptocurrency assets and completing over $750 million in bank-to-bank FX payments, Wyre has an established network of relationships with leading banks and exchanges.
These relationships give companies using the new API the ability to instantly convert both crypto and fiat currency, as well as send payments globally in 50+ countries, in 8 different fiat currencies, and 10+ cryptocurrencies.
“Liquidity is key because it helps all our partners scale their platform. The deeper liquidity available, the healthier the pricing is for large volume trading. Priority for us is keeping our partners as competitive as possible, and driving as much value as possible,” said Dunworth.
Using the New Wyre API
For a limited time, Wyre will be offering the developer community free access to their new API. To sign up, click here.