Regulatory issues are usually behind bearish trends this year. And for this reason, businesses in the crypto market are now working hand in hand with regulators. This is exactly the case when it comes to Coinbase. Coinbase has been working with regulators in order to inch closer towards offering institutional investors the opportunity to get involved in the crypto market. Coinbase is also working with Japanese regulators in order to operate smoothly in Japan.
On Monday, Square’s value spiked by 1.4% after it was able to obtain a New York State license. What this means is that users can now buy and sell Bitcoin using the Cash app. Square is a company that has been founded by Twitter CEO Jack Dorsey. It has supported buying and selling Bitcoin since the beginning of the year in January. After getting its license, Square has become the ninth company to receive the license form New York’s department of financial services.
Brian Grassadonia who is Square’s head of Cash app mentioned in a press release that “We are thrilled to now provide New Yorkers with Cash App’s quick and simple way to buy and sell bitcoin”. He also added that “Square and the NYDFS 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”.
In the recent earnings report, it seems that many are actually interested in cryptos. The company has reported that it was able to generate $200,000 of profit from Bitcoin just in the first quarter.
Accelerated Pace of Download
Dan Dolve who is an analyst at Nomura Instinet things that the Bitlicense can do wonders for the Cash app. He said that “something like this could accelerate the pace of downloads and let the Cash app be more entrenched”. The also added that “it’s a win-win and another positive step forward for Square”.
Despite the bearish price of Bitcoin, Square’s shares value skyrocketed by more than 80% this year alone. That is an additional $34 million from cryptocurrencies. It is also said that Square now has 7 million active users.
That is despite the fact that Bitcoin lost a significant amount of its value this year. Bitcoin lost more than half of its value since the start of 2018.
Gemini Trust Company
Aside from Square, Gemini Trust Company which is owned by Winklevoss twins, has also received the BitLicense and began to offer exchange-traded products for its clients via the Gemini Exchange.
In 2017, Cash App has partnered with Genesis Global trading. In May of 2018, Genesis released a press release regarding the NYDFS approval saying that “The license enables Genesis to facilitate the trading of several digital currencies, including Bitcoin (BTC), with its institutional trading partners. Genesis is the first New York-based trading firm to receive the license”.
These things only mean that cryptocurrencies are becoming more accessible. It is becoming accessible not only to people but also to investors alike. And if you are anticipating whether there is a bullish trend or not, Bitcoin has already recovered a bit after weeks of struggling since May 3. In just 24 hours, $12 billion was added to the entire crypto market.