Square, the payments company founded by Jack Dorsey, has received a license to enable residents in New York state to buy and sell bitcoin via its Cash App.
In a press release, the New York State Department of Financial Services Superintendent Maria T. Vullo said the agency approved Square‘s application for a virtual currency license. The payments company has a money-transmitter license from the Department of Financial Services (DFS).
The agency said in the press release that it completed a comprehensive review of Square’s application – including its anti-money laundering, anti-fraud, capitalization, consumer protection and cybersecurity policies – before granting the license.
“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market,” said Superintendent Vullo. “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.”
Brian Grassadonia, the head of Square’s Cash App, said in the same press release that the license will make it quick and easy 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,” he said.
According to a report in Reuters, Square is the ninth firm to get a BitLicense from the New York State Department of Financial Services. News of the license sent shares of Square to a new all-time high in intraday trading on Monday (June 18).
Square’s Founder and Chief Executive Jack Dorsey is a big supporter of bitcoin. Back in 2014, he helped enable merchants to accept bitcoin as a payment method. He also famously said in a tweet last year, “Bitcoin: we tried this with our eCommerce store years back. Didn’t see much. Would love to see a digital currency thrive.”
Earlier this year, Dorsey said the company would roll out bitcoin trading to nearly all of its Square Cash users.