Payments firm Square has secured a virtual currency license from the New York State Department of Financial Services (NYDFS).
Square fully launched the ability to buy and sell bitcoin in its Cash app in January but has so far not been able to offer the feature in New York.
That now changes, as it becomes the ninth firm to be granted a so-called BitLicense after coming through a review of its anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies.
“We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell bitcoin,” says Brian Grassadonia, head, Cash App.
While many in the FS industry view bitcoin with scepticism, Square boss Jack Dorsey has been a vocal supporter, billing the cryptocurrency as a “transformational technology for our industry”.
So far, his bet has yet to pay off in financial terms. Last month, Square revealed that while revenues from trading in bitcoin hit an impressive $34 million in the first three months, the cost of buying bitcoin to run the service amounted to £33.9 million.
The company reported $223,000 in profit for the crypto business, but may actually have made a loss due to downward pressure on the value of its bitcoin holdings.