Shares of Square (SQ) climbed in early afternoon trading after the company was granted a license in New York to offer residents the ability to buy and sell bitcoin through its Cash App.

CRYPTO LICENSE APPROVED BY DFS: The New York State Department of Financial Services said in a statement that it has approved Square's application for a virtual currency license. Square currently holds a money-transmitter license from DFS, it said. The DFS said it conducted a comprehensive review of Square's application, including the company's anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies, before approving the license. Financial Services Superintendent Maria Vullo commented in a statement that "DFS is pleased to approve Square's application and welcomes them to New York's expanding and well-regulated virtual currency market. 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." Square is the ninth firm to have obtained a "BitLicense" by the regulator. Other recent recipients of the license include crypto companies Xapo and Genesis Global Trading. Square's bitcoin-buying option, through its Cash app, first debuted last fall, after which the company began steadily providing access to a greater number of users.

WHAT'S NOTABLE: In May, Square Chief Executive Officer Jack Dorsey said that the company's move to let users of its mobile app buy and sell bitcoin this year was a "pretty contentious move within the company" and continues to be a source of internal tension, Reuters reported. Dorsey, who is also the CEO of Twitter (TWTR), reaffirmed his support for the cryptocurrency, noting that not everyone within Square agreed with his stance on it, including members of the board.

PRICE ACTION: Square is up 1.4% in afternoon trading to $65.39.