The digital payments firm, Square, one of the fastest growing companies in Fintech, has just received a coveted BitLicense from financial regulators in New York. This news is a significant achievement for the company since it can now operate in the state of New York where there is a substantial market for virtual currencies.
Square had applied for a license back in March and had submitted paperwork to this effect. This application was confirmed by a company spokesperson, although it was initially unclear what exactly was being applied for. The announcement was made earlier this week with the New York Department for Financial Systems confirming the BitLicense issue.
“DFS is pleased to approve Square’s application and welcomes 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,” Superintendent Maria Vullo said in a statement.
Square started providing options to buy Bitcoin through its Cash app which first made an appearance last autumn. After this development, the company began providing access to a steadily increasing number of users. Until this time, Square was not allowed to operate in New York, which is a major US market for cryptocurrencies. This license will undoubtedly provide considerable opportunities for Square to continue growing.
The company’s involvement in the crypto space has already provided positive results according to recent reports. It said that it had made a small profit on around $34 million in crypto-related revenue that came through its Cash app.
Square was set up by Twitter founder, Jack Dorsey, and has been slowly rising in value on the NASDAQ market. There is something of a problem here since Twitter does not allow adverts for cryptocurrencies or ICOs, citing the large number of scams around. However, Dorsey is a canny operator and sees the long-term benefits of cryptocurrency in general which Square is hoping to tap.
Jay is pretty interested in the crypto space. He’s written for several publications on the topic and has lots of ideas on how the world can be made a better place with blockchain technology. He’s also a fintech journalist with some years of experience and enjoys writing about new startups, ICO’s as well as any other intriguing news that catches his fancy.