Block's CashApp will stop supporting free p2p BTC transfer in December.

After several months of investigation by the federal government in the United States into Block’s Compliance behavior, Cash App decided to terminate the function of transferring BTC through user tags, which has raised concerns among users about the application’s risk handling capabilities. Cash App announced in its help page notification that it will no longer support sending and receiving BTC between $cashtags starting from December 20th, 2024. The company noted that users can still send and receive BTC using Lighting Network or BTC Block chain. In October, Wayback Machine’s check shows no such notification. In addition, this change appears to only affect BTC transfers and does not seem to affect other services, such as sending stocks or cash via unique identifier cashtags. A spokesperson for Cash App said the company made this decision to “focus internal resources on the products and services most used and valued by BTCholder on Cash App.” Cash App (formerly Square Cash) was launched in 2013 as part of Block Inc., initially a peer-to-peer payment system similar to PayPal’s Venmo. It has since expanded into a super app with features including BTC and stock purchasing, savings, borrowing, and even prepaid Visa debit card from Sutton Bank issuance. It is currently unclear how BTC p2p transfers are used on Cash App, as the platform has not disclosed this data. However, regulatory filings show that the Cryptocurrency business has been profitable for the company, with Cash App generating over $65 million in BTC gross profit in the fourth quarter of 2023, a 90% rise from the fourth quarter of 2022. In the first few months of 2023, Cash App generated over $10.3 billion in net revenue, accounting for approximately 65% of Block’s net revenue at that time. As of December 2023, the app has 56 million active accounts, but it is currently unclear how many of them are using encryption services. (crypto.news)