Bitcoin ATM Operator Now Licensed For NY
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Selling bitcoins in New York is harder than getting a ticket to the Oscars, but a Texan crypto company has just scored a seat. Coinsource, a leading operator of Bitcoin ATMs, has finally secured regulatory approval to buy and sell crypto for fiat, according to an announcement from the New York Department of Financial Services earlier today.
The latest BitLicense concludes a three-year-long application process that first started in 2015, making Coinsource the Empire State’s twelfth approved dealer in virtual assets. The Fort Worth-based company already operates 40 Bitcoin-selling kiosks in the state under a provisional 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,” said CEO Sheffield Clark, in a press release. “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.”
The company currently maintains 200 “Bitcoin Teller Machines” in 19 US states, including the District of Columbia. The company says that its machines—which come with 24/7 customer support—are easier and safer than online exchanges, which frequently come with long delays and are technically challenging.
“From the onset, our goal was to provide millions of Americans with a reliable and convenient way to buy digital currency,” Clark added. “Bitcoin is no longer a fringe currency, and in 2018, is increasingly being adopted by the mainstream. Today, with the issuance of the virtual currency trading license to a BTM operator, the Bitcoin industry takes another step toward public adoption.”
Albany is notoriously strict on cryptocurrency trades, and its requirements caused an exodus of the nascent Bitcoin industry when the License requirements were first implemented in 2015.
In order to secure a BitLicense, Coinsource was subjected to a “comprehensive and rigorous review” from State examiners and independent consultants, the DFS says. In addition to applying OFAC and BSA/AML controls over their customers, BitLicense holders are required to implement strict background checks of their employees and maintain high standards of transparency and accounting.
“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 DFS Superintendent Maria 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.”
In addition to Coinsource, the state has already granted BitLicenses to BitFlyer, BitPay, Coinbase, Circle, Genesis Global Trading, XRP II, Square, and Xapo. Charters have been granted to Gemini Trust Company, Paxos, and Coinbase Custody Trust Company LLC.
The author is invested in Bitcoin, which is mentioned in this article.