Mobile payments platform Square Inc. has recently applied for a Bitlicense, which will allow them to bring Bitcoin services to New York. The payment company has been a provider of crypto-related services since the beginning of 2018, facilitating transactions that involve Bitcoin.
The company began its activity as a payment system that was to warn small businesses that were usually out-priced by traditional banking facilities. At first, the company was not planning on providing crypto payments but then in November 2017 they decided to offer bitcoin services to several clients.
At the end of January this year, the company became a bitcoin service provider in all the states in which it was legal. But states such as Hawaii, Wyoming, New York, and Georgia have been excluded from the bitcoin services because strict regulations that want to supervise money flows to prevent money laundering.
Rising pressure from the SEC and other regulatory organizations prompted New York to establish its BitLicence digital currencies regulatory structure in 2015. The Bitlicense has caused a great deal of controversy in the Bitcoin community because of its strictness. This has determined companies that provide crypto related services in the state to move to other locations since this license has been introduced.
But in spite of its strictness, several others have adopted it and consider it to be the gold standard in terms of regulatory approval. If you can get authorization to provide bitcoin services in New York, you can basically get authorization in any other state.
A company that wishes to apply and receive a Bitlicense has to go through several obstacles and it is because of this that only very few companies manage to actually receive one. Circle inc. is one the few companies that got their license in September 2015.
Square allows its users to perform bitcoin transaction even though it currently it doesn’t have a framework for crypto payments. Customers are allowed to purchase a maximum of $10, 000 BTC per transaction.
If Square Inc. manages to receive its Bitlicense, the citizens of New York will be able to access the crypto services offered by the company.