Square has been approved for a BitLicense in the State of New York, according to a press release from the New York State Department of Financial Services (DFS) this week. 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.
The approval represents a major coup for Square, as it has not only been courting a digital license in New York for several months, but the state is also notoriously picky. Added to that, the strict and awkward nature of BitLicense has caused several major operators – such as Bitfinex – to cease digital trading in New York, while others simply haven’t bothered to apply.
However, even that is expected to change at some point. Back in February, Senator David Carlucci commented that they were working towards making BitLicense ‘something that works for the residents of New York state and the state economy’.
For the moment though, the criteria are still very strict. The DFS release ends on a clear reminder of this:
With the Square approval, DFS has now approved nine firms for virtual currency charters or licenses, while denying those applications that did not meet DFS’s standards. DFS has also 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).
Square can certainly expect success in New York. Indeed, it is already in profit on its Cash App despite only having been running the service for a matter of months.