Due to extremely strict policies and regulatory frameworks for cryptocurrency exchanges, New York is considered to be one of the hardest states to obtain a BitLicense. The application process is strenuous and just applying for the license can cost over 100 thousand dollars.
That may seem too high a price to pay for a New York BitLicense, but it’s a process the
How Did the Stock Price of Square Change?
CryptoCoinsNews has reported that the stock price for Square increased by a full three percent overnight. That increased the overall market valuation of the company by more than a billion dollars. In fact, the stock price of Square has been thriving over the past month and has gone up from $54 to over $66, which is more than a 22 percent increase. As of this writing, the market valuation for the company has reached an all-time high of $26 billion.
Why Did Square Need a BitLicense to be Successful?
The cost and process of obtaining the BitLicense was a major challenge for the company. Jim Cramer, the host of CNBC’s Mad Money, argued Square’s core business had much greater value than its current venture. Square found itself in trouble more than once, but the company was able to bounce back.
The company’s main goal was to serve New York investors and establish Square’s image as a cryptocurrency-supporting platform. A BitLicense was pivotal to establish the company’s place in the market. After yesterday's success, the juice was worth the squeeze. Three years ago, the Vice President of Bitstamp, George Frost argued that fighting the battle to obtain a BitLicense in New York benefited his company in a major way.
Frost said the following about the BitLicense process back in 2015 that explains why Square made the decision that obtaining a virtual currency license in New York was worth the time and money:
“We drafted a detailed risk assessment of Bitstamp USA and the Bitstamp group overall, and more than 30 policies, training manuals, and internal procedures guides that we believe are compliant with the New York regulatory regime. These included hundreds and hundreds of pages of plans covering every aspect of our intended operations. All of this internal scrutiny and drafting has made us a lot smarter company, albeit one with corporate tunnel syndrome.”