Jack Dorsey’s Square Inc gets ‘BitLicense’ in New York state

June 18, 2018
Chris Wheal

Square Inc, the payments company founded by Twitter CEO, Jack Dorsey, received its BitLicense in New York state on Monday. The licence allows the company to offer New York state residents the facility to buy and sell bitcoin through its Cash App.

Square receives its BitLicense in New York state Source: Piotr Swat / Shutterstock.com

The New York State Department of Financial Services issued the company a virtual currency licence after a rigorous assessment, the ninth company to receive it.

The BitLicense, which was created by the state financial services authority in 2015 is considered too onerous by many crypto companies. The department’s review of the Cash App included the company’s anti-money laundering, anti-fraud, capitalisation, consumer protection, and cybersecurity policies.

The financial services superintendent Maria Vullo said that the  “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.”

Square provides tools to start-ups and small businesses. At its core, the company’s hardware allows sellers to accept credit card and contactless payments. Its Cash App is seen as a disruptor of the point-of-sale (PoS) systems market, providing its customers with access to a range of financial services that are cheaper than the traditional PoS systems and is combined with cloud capabilities for vendors to track and analyse trends and purchases.

Brian Grassadonia, head of Cash App said: “We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell bitcoin.”

 

 

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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