Square a payment providing company recently received approval from New York state authorities that essentially allows them to support cryptocurrency trading directly through their Cash app.
Granted, cryptocurrency operations were available as far back as January of this year, but New York remained off limits due to regulatory questions.
Why this is Important for Square.
Square is a pretty big application, commonly used by business practices for merchant points and payment acceptance gateways. The company has long since declared an interest to support cryptocurrencies on a native level. It’s important to note that the regulatory disposition of the United States in terms of digital assets is quite strict. Especially so in the state of New York.
But, now that the company has a virtual currency license, provided by the N.Y.C Department of Financial Services, Square can now expand and take part in a digital asset market. It’s worth mentioning that the CEO of Square, Jack Dorsey, is already in possession of money-transmitter license assigned by the state of New York.
Squares Cash App and Competitive advantage.
Squares biggest competitor is Venmo, an alternative brought to the market by PayPal. However, Square has been outgrowing Venmo since its launch in 2015. This regulatory approval could stand to drastically boost the applications popularity in an ever-evolving market. A reason for the recent massive growth is the companies lust towards the cryptomarket.
This great news essentially grants crypto enthusiasts with an additional reason to become Square clientele and enhance the company’s growth further. It’s worth noting that this isn’t where Square’s acquisition of new licenses comes to an end. The company also filed for an FDIC license with the state of Utah in September. Which would grant the company the right to provide services identical to that of a bank.
Takeaway for Crypto lovers.
This definitely spells good news for the cryptocurrency industry as a whole. Because the more trading alternatives there are in the market, the more choices people have. Having a choice is always good, it keeps competitors sharp, and investors at ease.