Coinsource Becomes First Bitcoin ATM Co. In New York To Get BitLicense
New York for the first time granted license to a Bitcoin teller machine (BTM) operator.
Coinsource is the 12th cryptocurrency firm to receive a Bitlicense from the New York State Department of Financial Services (NYDFS).
Announcing the news, NYDFS Superintendent Maria T. Vullo said, “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.”
Coinsource currently operates 40 Bitcoin kiosks in New York state, similar to ATMs.
The customers can insert cash and buy bitcoin and store it on their mobile wallet or sell bitcoin for cash by scanning their mobile wallet at the kiosk.
Coinsource CEO Sheffield Clark said, “Coinsource is the first and only company that operates BTMs to receive a New York 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.”
NYDFS granted approval to Coinsource after a comprehensive and rigorous review of its application, and subject to significant regulatory conditions.
The company is required to implement effective risk-based controls and appropriate BSA/AML and OFAC controls to prevent money laundering, terrorist financing, misuse of Bitcoin, including market manipulation.
NYDFS has made it clear that the license is subject to revocation for failing to comply with any of the above provisions.
Coinsource is an audited firm with more than 20 employees and over 200 machines. It currently has money transmission licenses in 18 states.
The company’s general counsel Arnold Spencer said that by next year, Coinsource will have operator license in all 50 states.
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