Mobile payment application Square acquires New York state cryptocurrency transaction license
Regulators granted payment company Square a license to allow New Yorkers to trade cryptocurrency in a rapidly growing cash application. The company was led by Twitter founder Jack Dorsey, whose CEO posted a message on Twitter confirming the news. Subsequently, the price of digital currency went higher and Bitcoin returned above $6,500.
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The San Francisco-based company is known for selling devices that make it easy for small businesses to accept credit card payments. The company first purchased bitcoins from its applications in other states in January.
— Cash App (@CashApp) June 18, 2018
Yahoo Finance said that the so-called BitLicense will allow Square to provide Bitcoin transaction services through its cash application, but only to New York residents.
Square began testing Bitcoin transaction services on its cash transfer application in November last year and officially launched this function in January this year. However, New York residents could not use this feature previously because they did not obtain a New York State license.
Square also holds a remittance license issued by the New York State Department of Financial Services.
The company received $34.1 million in revenue through the Bitcoin transaction service in the first quarter of this year, but its cost also reached $33.9 million.
Square was founded by Twitter CEO Jack Dorsey, and Dorsey is one of the most supportive Bitcoin technology megaphones. He once said that he expects Bitcoin to become the world’s only cryptocurrency within the next ten years.
At the close on Monday, Square’s shares rose 2.67% to $66.20, with a total market value of approximately $26.526 billion.
Since June 2015, New York has been considered one of the most rigorous states for cryptocurrency business when it began to require virtual currency companies doing business there to obtain a license to hold customer funds and convert virtual currency to US dollars. And other regular currencies. In recent years, New York has established a strict reputation for cryptocurrency business supervision. All of these companies must obtain a permit to hold customer funds and exchange cryptocurrencies for dollar and other types of operations.
In a statement, the New York Stock Exchange stated that in order to grant licenses, the financial oversight body conducted a thorough review of Square’s application, including anti-money laundering, anti-fraud, and cyber security policies.