Square Acquires New York State Cryptocurrency License
According to a statement by the New York State Department of Financial Services, this license was granted after a comprehensive review of Square’s app, including its anti-money laundering and anti-fraud policies.
This news comes just days after New York granted its sixth BitLicense to Bitcoin Wallet Xapo. Other license holders include the Winklevoss twins’ Gemini exchange and itBit, which recently added Stellar, Litecoin, Ethereum and Bitcoin Cash to its listings.
In Q1, Square released the first report that included the company’s bitcoin trading operation since adding the feature in January of this year. While the company recorded another solid quarter, with a adjusted revenue growth of 51% for the quarter, Square netted just $200,000 from its newly-added bitcoin functionality. This report has since fueled a number of analysts and investment groups to criticize the company’s cryptocurrency efforts.
In spite of the criticism, Square and its CEO, Jack Dorsey, continue to be bullish on bitcoin. Dorsey went on record in March stating that bitcoin is likely to become the dominant form of payment in the next ten years. More recently, at Consensus 2018, Dorsey shared his current thinking regarding regulations and working with the SEC.
This technology is a fundamental shift to our world and can have so many positive outcomes. We have to do the work to educate regulators and educate the SEC why this technology is important.
This latest move by Square indicates how serious the company is taking current and upcoming cryptocurrency regulations.