Square secures cryptocurrency licence in New York

Square has secured a licence from the New York State Department of Financial Services (DFS) to offer virtual currency services.

Square secures cryptocurrency licence in New York

The approval comes after the watchdog’s review of the company’s anti-money laundering, anti-fraud, capitalisation, consumer protection, as well as cybersecurity policies. The company has a money-transmitter licence with DFS.

DFS superintendent Maria Vullo said: “DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market.

“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 first introduced the bitcoin-buying and selling feature for its users last year through its Cash app.

The latest approval takes the total number of virtual currency charters or licenses issued by DFS to nine.

Last week, DFS granted a virtual currency licence to digital financial services firm Xapo as well as approved Paxos’s application to trade four additional cryptocurrencies. Paxos operates under a virtual currency charter issued by DFS.

Apart from these firms, the New York regulator granted virtual currency licenses to Genesis Global Trading, bitFlyer USA, Coinbase, XRP II and Circle Internet Financial, and virtual currency charter to Gemini Trust Company.