New Yorkers now have the added option of trading cryptocurrencies using the Cash App. This after the New York State issued a Bitlicense to Square, the company that owns the Cash app.
The app has been in use in many other states except New York known for its strict regulations on cryptocurrencies.
The DFS says Square was subjected to a comprehensive review on its cybersecurity, anti-money laundering and consumer protection policies.
— Cash App (@CashApp) June 18, 2018
The virtual currency license gives the company access to a growing virtual currency market, New York State Department of Financial Services Superintendent Mara Vullo said 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,” a statement from the agency said.
Only a few days ago, the state granted a Bitlicense to Xapo, a wallet service.
Growing User Base
The development is expected to further boost the popularity of the payment app which already boasts of a rapidly growing user base. Square is one of the best performing companies with year with its shares surging almost 90% so far.
Square has already applied for a FDIC license that will let it operate as an industrial loan company, something that will see it offer services similar to those of a bank.
The company which already has a money transmitter license started supporting bitcoin earlier this year allowing users to buy and sell the leading cryptocurrency. The move to support cryptocurrencies helped rake in $34 million in the first quarter.
“We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell bitcoin,” Cash App’s Brian Grassadonia said.
“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,” he added.
Square CEO Jack Dorsey who also serves as the Twitter CEO tweeted about the news.
Leading cryptocurrency companies like Coinbase and Circle already have a Bitlicense. Square now becomes the seventh company to be granted the license in the state.
In April, the New York Attorney’s General office asked exchanges to disclose information regarding some of their activities in the form of a questionnaire.
The move attracted a sharp reaction from Kraken CEO Jesse Powell who blasted the NYAGS’s for being anti-business.