Square announced on June 18, 2018 on Twitter that they obtained a New York BitLicense, the Bitcoin trading license. Through the Cash App from Square, the license permits to customers to pay with Bitcoin in New York.
‘THE MISSING PIECE OF THE PUZZLE: BITCOIN TRADING LICENSE’
BitLicense includes all the virtual currency firms. It is a term that uses the New York State Department of Financial Services (NYDFS) for the cryptocurrencies companies. BitLicense exists since August 2015, being one of the hardest licenses to obtain. Square obtained this right, being the seventh company to receive the approval.
A few days ago, Dan Dolev of Nomura Instinet, related:
That was one of the missing pieces in their [Square’s] puzzle. They had approval in most states, but New York was by far the biggest one where you couldn’t trade Bitcoin.
At the start of this year, Square launched the Bitcoin trading on its Cash app. In the first 4 months of 2018, Square managed to trade $34.1 million in Bitcoin.
Our customers in New York state can now buy and sell Bitcoin instantly with Cash App! http://cash.app/download
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SQUARE’S CASH APP IS GROWING FASTER THAN PAYPAL’S VENMO
The BitLicense is another important step in the evolution of Square. Brian Grassadonia, the chief of Cash app, declared:
We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell Bitcoin. Square and the New York State DFS share a vision of empowering people with greater access to the financial system and today’s news is an important step in realizing that goal.
Due to the development of Square, the company’s shares have increased with almost 82 percent since the beginning of 2018.
The Square Cash app seems to be one of the most relevant products of the company. The app had a faster growth than Pay Pal’s Venmo. Making a comparison, Square Cash had a 128 percent increase since 2016, while Venmo had a 74 percent increase for the same period.
Dolev highlighted in another declaration that New York is on the top of financial centers from US. He thinks that the app will be downloaded by more and more users.
This announcement gives people another excuse to download the app. It might not move the bottom line right away, but [it] definitely helps from a marketing perspective.
Square announced in December 2017 that it had 7 million active users on its Cash app.