Square Seeks BitLicense to Bring Bitcoin Buying to NY

Digital payments company Square is in the process of applying for a BitLicense in a bid to expand its Cash App's bitcoin buying option to New York.

A spokesperson for Square confirmed the process following a tweet on Tuesday that suggested the company was "working on" opening up bitcoin buys and sells to users in that area. The company didn't immediately respond to a follow-up question about whether Square had already submitted an application or if it is preparing to do so.

To date, only a handful of companies have been granted a BitLicense, the regulatory framework first instituted in 2015. The controversial launch ultimately led to a number of companies opting to stop offering services in the state, though recent comments from state lawmakers indicate that the BitLicense may see some revisions in order to alleviate some of those concerns.

Additionally, the Cash App is now available to users in Wyoming, following the passage of legislation in the state that eases the burden on companies that provide cryptocurrency services. Previously, crypto startups had largely stayed away from the state, but this month's move to exempt those companies from Wyoming's money transmission statutes effectively cleared the runway for such launches.

The payments app had previously rolled out bitcoin features for most American users in January, excluding customers in four states with stricter regulations, including Wyoming and New York.

Reporting by Michael del Castillo.

New York City skyline image via Shutterstock