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Jack Dorsey’s Square Receives 7th-Ever BitLicense from the State of New York

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by Darya Rudz · 3 min read
Jack Dorsey’s Square Receives 7th-Ever BitLicense from the State of New York
Photo: Square / Instagram

Financial services provider Square has got the NYSDFS 7th-ever BitLicense allowing New Yorkers to trade cryptocurrency on the rapidly growing Cash app.

Square, a digital payments company, has been granted BitLicense from the New York Department of Financial Services (NYDF), which means formal approval of Square’s application for a virtual currency license.

BitLicense is a business license for using cryptocurrencies with a lengthy list of terms and conditions. It was issued on the 8th of August, 2015, by the New York State Department of Financial Services (NYSDFS). The license is aimed at regulating virtual currency business activity.

According to NYSDFS press release, such companies as Xapo, Inc., Genesis Global Trading Inc., bitFlyer USA, Coinbase Inc., XRP II and Circle Internet Financial, and charters to Gemini Trust Company and Paxos (formerly itBit Trust Company) have got the license earlier. BitLicense for Square is the 7th-ever BitLicense. As was previously reported by Coinspeaker, the 5th-ever BitLicense was granted to Genesis Global Trading Inc., Xapo received the 6th one. Bitcoin exchange Coinbase has the license as well.

BitLcense is difficult to get, and New York is considered one of the strictest states when it comes to regulating cryptocurrency firms.

Square, Inc. is a financial services, merchant services aggregator and mobile payment company based in San Francisco, California. Founded in 2009 by Jack Dorsey and Jim McKelvey, the company launched its first app and service in 2010. It has been traded as a public company on the New York Stock Exchange since November 2015 with the ticker symbol SQ. Bitcoin trading is available at its Cash App which allows its users  to carry out instant fiat transactions, free cash-outs, and instant Bitcoin buy/sell option in 50 states. The option of Bitcoin buying/selling was released in January this year.

In December, Square had 7 million active customers on its money-transfer app. This year, shares of the company have surged 88 percent, and hit a record around $65 Monday.

Square applied for BitLicense last year. According to NYSDFS, it granted Square approval only after a comprehensive review of the company’s “anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies.”

“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.

Square CEO Jack Dorsey is one of the most outstanding supporters of Bitcoin within the business community. He often speaks on the subject of virtual currencies. One month ago, Dorsey predicted that tBitcoin would become Internet’s native currency.  Earlier, he said Bitcoin would be the world’s single currency. According to Dorsey, many of Square customers have been using the Cash app more like a bank account than the company intended, that’s why Square plans to “lean into” the trend, and has already signaled plans to break into banking.

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