On Tuesday (June 19) Twitter co-founder Jack Dorsey’s mobile payment company Square received its New York State Cryptographic Currency License, allowing it to become a legitimate Bitcoin Trading Service.
On June 19, Twitter boss Jack Dorsey’s mobile payment company Square was granted its New York State Cryptographic Currency License. What this means in layman’s terms is Square can now use its “Cash” application to provide New York State residents with a legitimate Bitcoin trading service. Square became only the ninth company to be granted a “BitLicense” issued by the New York State Department of Financial Services.
Bitcoin Fan Jack Dorsey
Jack Dorsey, who is also both Square and Twitter’s CEO, is one of Bitcoin’s most ardent supporters, and a serious advocate of blockchain technology. At a tech conference held last week Dorsey reiterated that he hopes Bitcoin can one day become the “primitive” currency of the Internet.
Dorsey stated that the decision to allow users to buy and sell Bitcoin in Square’s Cash application has caused more than a little controversy and tension internally within this company. Square earned $34.1 million in revenue via its Bitcoin service in the first quarter of 2018, but its Bitcoin costs reached $33.9 million.
Square Thoroughly “Vetted” By Regulators
In order to have received such an important license, financial regulators were obliged to conduct a comprehensive assessment of Square’s applications, and thoroughly vet the company regarding its anti-money laundering, anti-fraud, and cyber security policies.
The State of New York is quite possibly the most heavily regulated state in the US when it comes to the examination of cryptocurrency companies. Since 2015, crypto companies that wish to become virtual currency operations in New York State have been required to obtain the necessary licenses in order to provide relevant transaction services.
Square – who also hold a remittance license issued by the New York State Department of Financial Services – has its headquarters in San Francisco. Until the launch of its Cash app, the company’s most famous product was a device that helped SMEs accept credit card payments.
Square began to provide Bitcoin purchase services in several other US states in January.