New York Grants License To Operate Coinsource’s Bitcoin ATM

Nov 02, 2018 at 17:17

Bitcoin ATM operator Coinsource has been granted a virtual currency license, or ‘Bitlicense,’ from the New York State Department of Financial Services (NYDFS).

In the agency’s press release, the Texas-based operator said the regulatory nod makes it the “first and only” Bitcoin Teller Machines (BTM) operator to receive a virtual currency license.

“All New Yorkers — from the people that are unbanked to the people who own the banks — can use our kiosks in their neighborhood retail locations to buy Bitcoin instantly in a convenient and familiar way. Now that Coinsource is a license holder, our customers can buy and sell with confidence that Coinsource meets and exceeds the high standards set by the New York Department of Financial Services,” Coinsource CEO Sheffield Clark said.

The firm already has 40 machines scattered n New York City, Westchester and Nassau County.

BTMs are touchscreen kiosks that enable customers to deposit cash and either buy Bitcoin – with the purchase synching automatically to their mobile wallet – or to scan their mobile wallet at the kiosk, sell their crypto, and withdraw cash.

To secure such license, applicants have to pass a comprehensive oversight review which includes showing one’s capability to continuously comply with the NYDFS’ rigid regulations.

For her part, Financial Services Superintendent Maria T. Vullo emphasized the need of “implementing strong regulatory safeguards” while fostering the “responsible growth of financial innovation.”

“Today’s approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation,” said Vullo.

“New York’s financial services marketplace is thriving with companies committed to complying with DFS’s regulations that ensure the security of transactions, safeguard the industry and protect consumers,” she added.