ALBANY, N.Y.—Shortly after giving its sixth-ever BitLicense to cryptocurrency wallet Xapo, New York has permitted fintech startup Square to operate in the state, allowing its users to buy and sell Bitcoin.
The New York Department of Financial Services (NYDFS) revealed its official approval of Square’s application for a virtual currency license, also referred to as “BitLicense.” Usually seen and condemned as the most rigid U.S. state law governing cryptocurrencies, this is the seventh BitLicense offered to a company almost three years after Bitcoin startup Circle obtained the first license in September 2015, HiBusiness reported.
“Square, which has previous money transmitter license from the DFS, started backing Bitcoin through this well-known ‘Cash’ app this year. By doing this, the digital payments company provided immediate buying and selling of the world’s most dominant cryptocurrency via its platform,” HiBusiness said.
“We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell Bitcoin,” said Square’s Cash App chief Brian Grassadonia.
Square’s move to back Bitcoin has helped to improve its stock this year and has witnessed the firm gaining a profit from $34 million in total crypto-related revenue in Q1 2018, HiBusiness noted.
A Comprehensive Review
The DFS noted it took Square through a comprehensive review; to determine the firm’s anti-money laundering, anti-fraud, consumer protection, cybersecurity and capitalization policies before granting the license, which will be liable to ‘ongoing supervision’ throughout.
“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market,” said Maria T. Vullo, DFS superintendent, in a statement. “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.”