Financial news

Having previously had a client relationship with Altalix, Clear Junction, the cross-border payments company, has now acquired the fiat-to-crypto gateway solution provider. The acquisition represents the next step in Clear Junction’s mission to become the one-stop shop payment management platform.

The digital asset market is increasing rapidly, with the number of cryptocurrency users predicted to reach 994.30 million by 2027. Furthermore, revenue in the cryptocurrency market is expected to grow by 14.40 per cent annually, reaching $64.87billion by 2027. Being one of the first UK businesses to become registered with the Financial Conduct Authority (FCA) as a crypto assets firm, made Altalix the ideal acquisition for Clear Junction.

Especially as it was a part of the FCA Regulatory Sandbox programme and backed by the FCA Innovation Hub.

Dima Kats, CEO of Clear Junction, commented: “It has been a pleasure to work with the management team at Altalix, and the wider team while they were a Clear Junction client. We are excited to take this business forward.

“As part of the acquisition process, Clear Junction was required to undertake a rigorous change in control process with the FCA. Not only have we gained a true competitive edge with the unique pairing of cryptoasset registration and EMI licence issued by the FCA, but the acquisition also holds significance as we look to the future of finance and how the industry will develop.

“We closely follow the regulatory developments related to digital assets in the UK, and so it is imperative for us to expand our expertise and product offerings in line with the market trends and our vision to provide correspondent account services to regulated institutions.”

No views to become an exchange

Clear Junction has confirmed that it does not have ambitions to trade in digital assets or become an exchange. However, prior to the acquisition of Altalix, it took into consideration the progressive approach by the UK, and the needs of its clients’.

In June 2023, the Law Commission published its final report to the UK Government. It advised that the common law system in England and Wales is well-placed to provide a coherent and globally relevant regime for existing and emerging types of digital assets.

In addition, given HMRC’s declaration that digital assets such as cryptoassets are taxable since they are not considered currency, money or gambling, it is clear that the inevitable growth of the digital asset market will require a roster of fintech and payments companies capable of accommodating its growth and evolution.

Even the Prime Minister sees the UK becoming a global hub for digital assets in the future.

Therefore, to remain competitive in the payments space, Clear Junction needs to offer both fiat and digital services to its clients in the future.

The future of Altalix

Moving forward, Altalix, will remain a separate company. However, the brand name will change to Clear Junction Digital Ltd. Its business strategy, however, will shift from serving retail clients to exclusively providing services for regulated institutions. This is in line with Clear Junction’s market focus.

Dima continued: “Clear Junction has always seen compliance as a cornerstone to our business. We are confident that this acquisition is an investment into our capabilities and stability of service to our clients with a solid infrastructure for offering products that fit the purpose of the future of digital assets. We will spend some time in Q4 bedding in the new business. Furthermore, we will update policies and processes (to ensure they are in line with our high standards), and develop pilot products for launch.”

The news of the acquisition follows the launch of CJClique in June. CJClique is Clear Junction’s new platform enabling its digital asset clients to connect and collaborate. It comes just days after it announced its ISO 27001 certification, the highest global standard that businesses can achieve for information security.