Square Inc (NYSE:SQ) customers in New York can now buy and sell bitcoin through the company’s Cash App. This is after the company secured a license so as to offer the residents of New York with the ability to trade bitcoin. Following the license, the company now joins eight other companies that have been issued with the “BitLicense” by the New York State Department of Financial Services. Although the company had launched trading of cryptocurrencies through its app ate the start of this year, the same was still not available to New York residents.
Bitcoin prices rallying
Following the announcement on Monday, bicoin prices immediately rose. Bitcoin, the biggest digital currency by market capitalization went up more than 4.5% to trade at $6,793. This is its highest price since Tuesday last week.
Review of Cash App
The license was granted after the regulatory agency carried out a comprehensive review of the Cash App to ensure that it complies with all regulations. These include cybersecurity policies, anti-fraud and anti-money laundering. In addition to the new lisence, the company also holds a money-transmitter license from the same regulator.
Since 2015, New York has been one of the strictest states to crypto-related businesses. Digital currency businesses that wish to have operations in the state are required to obtain a license to hold customer funds as well as cryptocurrecies for dollars and other coins.
Square, which was founded by Jack Dorsey, the CEO of Twitter Inc (NYSE:TWTR), mainly specializes in selling devices that facilitates credit card payments among small businesses. The CEO has been one of the leading bitcoin crusaders from the tech industry.
While appearing at a conference last month, had indicated that he is hopeful that bitcoin will become the “native” currency of the internet adding that he is a big fan of bitcoin. He admitted that the decision by the company to start trading bitcoin was a controversial one and has led to a lot of internal tension. In the first quarter of 2018, the company reported $34.1 million in revenue from its bitcoin business. It however recorded costs amounting to $33.9 million from its bitcoin businesses.