Square Becomes the Seventh Cryptocurrency Business to Receive BitLicense
While many have criticized the New York authorities over the draconian nature of their BitLicense regulation, it appears the NYDFS has seen reasons to soften its requirements a bit to make it easier for more companies to receive the permit. Now, creators of the Square bitcoin app have been granted BitLicense – making it the seventh company to receive the license in three years.
Squaring Up with Crypto Elites
The New York Department of Financial Services has announced its approval of Square’s BitLicense application.
Established in 2009 by Jack Dorsey and Jim McKelvey, Square has been operating in New York with only a money-transmitter license, a permit that makes firms offering payments services such as check issuance, drafts, money orders and more, to operate legally in the state.
Financial Services Superintendent, Maria T. Vullo announced:
“DFS is pleased to approve Square’s application and welcome 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.”
With this latest development, New York residents will now be able to use Square’s rapidly growing cash app that allows users to buy or sell bitcoin seamlessly.
Brian Grassadonia, Head of Cash App, expressed excitement over the excellent feat achieved by the firm, saying:
“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.”
While the integration of bitcoin into its operations since late 2017 has had a super bullish effect on the company’s shares, obtaining the somewhat elusive DFS BitLicense approval have fueled another rally for Square’s share price.
According to CNBC, Square has seen an 88 percent surge in its stock price since the beginning of 2018, and it hit an all-time high of $65 following the firm’s success with the DFS.
“That was one of the missing pieces in their puzzle. They had approval in most states, but New York was by far the biggest one where you couldn’t trade bitcoin,” said Dan Dolev, an analyst at Nomura Instinet.
Nine in, Hundreds Still Out
For the first time since the regulation came into effect in 2015, the New York Department of Financial Services has approved two cryptocurrency businesses within one week.
Notably, on June 14, 2018, reports surfaced that the NYDFS had approved Xapo’s application for a virtual currency license after conducting a comprehensive review of the firm’s anti-money laundering, anti-fraud, Cybersecurity and other policies.
“We are very pleased with the approval of Xapo’s BitLicense application. It is the end result of much hard work, not just by Xapo personnel but by the DFS and its staff,” Xapo President, Ted Rogers declared.
Founded in 2013 by the highly reputable Argentine entrepreneur, Wences Casares, Xapo offers retail and institutional bitcoin investors a secure way to store their coins.
On May 27, 2018, BTCManager reported that Xapo had successfully added support for Segregated Witness (SegWit) to its bitcoin wallet, making it easy for users to send and receive the flagship cryptocurrency speedily, with meager transaction fees. So far, a total of 9 firms have been licensed to trade crypto in New York State including Gemini Trust and Paxos that were granted charters.