Payment Company Square Inc. announced, on Monday, that it had received a BitLicense to operate in the state of New York. It has now become the ninth firm to receive a cryptocurrency license from the New York State Department of Financial Services (NYDFS).
The license defines the company as a “money-transmitter.” The NYDFS found the Cash App from Square meets their guidelines for anti-fraud, cybersecurity, and anti-money laundering. Users in the state can now safely buy and sell Bitcoins using the app.
Square Thrilled With the Development
Cash App head Brian Grassadonia was excited by the news. He said:
“We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell bitcoin. Square and the New York State DFS share a vision of empowering people with greater access to the financial system and today’s news is an important step in realizing that goal.”
The app’s status as a licensed Bitcoin sale and purchase platform was confirmed after comprehensive tests from NYDFS. Superintendent Maria T. Vullo noted:
“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market. DFS continues to work in support of a vibrant and competitive virtual currency market that connects and empowers New Yorkers in a global marketplace while ensuring strong state-regulatory oversight is in place.”
New Beginnings Lie Ahead
New York has some of the most stringent regulations for cryptocurrencies since June 2015. It requires companies to hold a license to operate a cryptocurrency business, whether they trade fiat-to-crypto or crypto-to-crypto. Square’s triumph in obtaining this license is a big step towards their future success.
Square launched Bitcoin purchase on its app in January 2018. Twitter and Square CEO Jack Dorsey, previously, said that including crypto payments in the app was a “pretty contentious move within the company.” According to a May shareholder letter, the company’s digital currency costs were $33.9 million while revenues were $34.1 million for the first quarter of 2018.