Financial Services Provider Square Acquires New York Bitlicense

The company Square announced on Monday the firm has been granted the Bitlicense from the New York Department of Financial Services (DFS). The firm and its ‘Cash App’ are now legally allowed to operate and utilize cryptocurrency solutions in the state of New York.

Also Read: Cryptocurrency Brokerage Service Genesis Global Granted Bitlicense

Square Has Obtained the New York Bitlicense

The Square Cash App was offered to most U.S. states this past February and now the company can operate in the state of New York. Users can purchase and sell Bitcoin Core (BTC) from within the app.

Square, Inc. is a payment processor and financial services provider that was launched in 2010. The San Francisco based company was founded by Jack Dorsey (also the CEO of Twitter) and Jim McKelvey back in 2010 and the firm has been staunch bitcoin supporters for quite some time. Back in November 2017, the company announced it was implementing in-app BTC buy/sell options for certain select customers. A few months later in February of 2018 Square rolled out the BTC service for all users. Since then the revenue derived from the cryptocurrency in-app services has added around $8Bn USD to Square’s overall valuation according to data collected last May. Now this week, Square has been granted the official Bitlicense money-transmitter approval from the DFS.

“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market,” explained the Financial Services Superintendent Maria T. Vullo during the announcement on Monday.

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.

Square Joins Eight Licensed Cryptocurrency Operations in New York

According to the DFS, the regulators have conducted a review over Square’s business model which includes anti-money laundering guidelines, Know-Your-Customer (KYC), and cybersecurity policies. Moreover, the DFS states the newly licensed Square will be under supervision. The New York regulatory agency has granted the Bitlicense to Circle, Gemini, Coinbase, XRP II, Paxos (formally Itbit), Bitflyer, Xapo, and more recently Genesis Global Trading Inc.

“We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell bitcoin,” said Brian Grassadonia, Head of Square’s Cash App service.

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.

Now New York residents will be able to utilize the Cash App in the state as the region was one of the few states where the cryptocurrency option wasn’t incorporated until today.

What do you think of Square receiving the New York state Bitlicense? Let us know in the comment section below.

Images via Shutterstock, Square, and Pixabay.

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