Square Gets Big Bitcoin Approval

Home » FinTech » Cryptocurrencies » Square Gets Big Bitcoin Approval

Square Gets Big Bitcoin Approval

Both Square and Bitcoin got some good news this week as the former’s Cash app was granted regulatory approval to trade the cryptocurrency in the state of New York. The announcement comes as the Empire State was a notable holdout in allowing Cash users to buy and sell Bitcoin dispute other users having ability since Square began rolling out the feature earlier this year. In fact Square has now become only the ninth firm approved to trade crypto in New York. News of the state’s green light not only sent Square’s stock price climbing but also helped boost the price of Bitcoin.

As CNBC reports, Square stock reached a new high on Monday, closing above $66 a share. Meanwhile Bitcoin’s price climbed from around $6,500 on Monday morning to a high of $6,800 during the day. Of course the long-term impact for Square could be even better, with analyst Dan Dolev telling CNBC, “This announcement gives people another excuse to download the app.” Incidentally that’s something Cash could use, considering new estimates that put it well behind leaders like Venmo and Zelle.

In a press release announcing the New York State Department of Financial Services’s (DFS) approval decision, Square’s head of the Cash app Brian Grassadonia said, “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.” DFS Superintendent Maria T. Vullo also had positive things to say about the move, stating “DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market.” She continued, “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.”

via CoinMarketCap.com

While it’s easy to assume that this development is mostly a boon for Square and no one else, the modest lift that Bitcoin saw during the day would suggest it’s more than that. Sure one could argue that the spike was coincidence, there’s no denying that this was a rare regulatory win for cryptocurrency at a time when concern about the technology and its viability have been constantly raised. As a result, Bitcoin and cryptocurrency enthusiasts should celebrate Square’s victory and hope that there’s similarly good news ahead.


Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Survey Shows Late Credit Card Payments Aren't Always About Being Broke

Everyone knows that carrying a balance on your credit card can lead to interest fees, adding to your debt. However there's another expensive risk that consumers may run afoul of: late fees. In fact a new survey from the personal finance site WalletHub finds that 46 million Americans anticipate missing...

LendingClub to Acquire Radius Bank for $185 Million

As various FinTech disruptors have grown over the years, some observers have theorized that banks would look to acquire these startups in order to integrate their services into their own (which has happened in some cases). However fewer would have guessed that things might end up the other way around...

Bitcoin.com Introduces Coin-Creation Tool Called "Mint"

In 2017 — when Bitcoin broke-out, reaching a record of near $20,000 per coin — cryptocurrency suddenly became a phrase that even everyday Americans were at least somewhat familiar with. Of course the majority are likely only aware of Bitcoin itself and not any of the other multitude of tokens...