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Square’s Cash app customers in New York can now trade crypto

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Peter Terlato
Posted: 18 June 2018 4:02 pm
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In addition to Square, NY’s DFS has approved eight other firms for virtual currency charters or licenses.

The New York State Department of Financial Services (DFS) approved mobile payments company Square’s Cash app for a virtual currency license, enabling local customers to buy, sell and trade bitcoin.

Square co-founder and chief executive Jack Dorsey disclosed the announcement in a tweet this week.

Square already holds a money-transmitter license, administered by the New York DFS. The state regulator carried out a review of Square’s virtual currency license application, including anti-money laundering, anti-fraud, capitalization, consumer protection and cybersecurity policies. The license is subject to supervision.

“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market,” New York DFS superintendent Maria T. Vullo said in a press release. “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 enabled bitcoin trading through its Cash app in late January 2018. However, at the time, residents of New York, Georgia, Hawaii and Wyoming were restricted due to prohibitive and strict trading regulations.

The Cash App allows users to send and receive payments. Square holds bitcoins on behalf of users and doesn’t add fees to bitcoin transactions. Buy and sell prices are calculated by analyzing major exchanges valuations.

Customers are limited to $10,000 in bitcoin buys per week, although there’s no amount limits imposed for what can be sold. Additionally, users are not able to send their cryptocurrency directly to other Cash App users.

Merchants are pushing Square to take the next step and make bitcoin a payment option for goods and services.

In addition to Square, the DFS has approved eight other firms for virtual currency charters or licenses.

NYDFS has granted licenses to 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).

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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2 Responses

    Default Gravatar
    AlesheaireNovember 7, 2019

    Hi my cash app account was closed and my money is stuck in there i would like to talk to a real person

    Reply
      Default Gravatar
      nikkiangcoNovember 8, 2019

      Hi Alesheaire,

      Thanks for your comment and I hope you are doing well. I’m sorry to hear about what happened to your Cash App account.

      Upon checking with Cash App, once an account is closed, the decision is permanent and irreversible. For more information, please check out Cash App’s Terms of Service on their website. In order to cash out, you’ll need to link a new debit card or bank account that has never been associated with a Cash App account before and follow the steps on how to cash out below:

      To cash out funds from your Cash App to your bank account:

      Tap the Balance tab on your Cash App home screen
      Press Cash Out
      Choose an amount and press Cash Out
      Select a deposit speed
      Confirm with your PIN or Touch ID

      Hope this helps and wish you’re able to cash out your money!

      Best,
      Nikki

      Reply

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