What is the reason behind Square holding funds for cryptocurrency transactions?

3 answers

• duandeyuJun 07, 2022 · 3 years ago
  Square holds funds for cryptocurrency transactions to mitigate the risk associated with the volatile nature of cryptocurrencies. By holding funds, Square ensures that they have enough liquidity to cover potential losses or refunds. This policy helps protect both Square and its users from potential financial risks.
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• Crane KempSep 23, 2022 · 3 years ago
  The reason behind Square holding funds for cryptocurrency transactions is to comply with regulatory requirements. Holding funds allows Square to verify the legitimacy of transactions and prevent money laundering or fraudulent activities. It is a common practice in the cryptocurrency industry to hold funds for a certain period of time before releasing them.
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• JONATHAN MAGURUFeb 14, 2024 · 2 years ago
  As an expert in the cryptocurrency industry, I can tell you that holding funds for cryptocurrency transactions is a necessary measure to ensure the security and stability of the platform. It helps prevent potential double-spending attacks and ensures that transactions are processed accurately. By holding funds, Square can also provide better customer support and resolve any disputes or issues that may arise during the transaction process.
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