Square’s Cash app customers in New York can now trade crypto
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.
Buy and sell bitcoin right in Cash App…now in New York! https://t.co/sIvlVoSXun
— jack (@jack) June 18, 2018
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).
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