New York’s Department of Financial Services has given Bitcoin ATM provider, Coinsource, a BitLicense for operating in the state.
Live Bitcoin News has reported on the increase in crypto ATM popularity, even when industry regulations are unclear. Unocoin’s Bitcoin ATM in India suffered because of this lack of clarity with the machine being seized and the company co-founders arrested. Coinsource is taking a different route.
It’s a Go for Coinsource
A recent press release issued by the New York’s Department of Financial Services (DFS) states that the body has awarded the Bitcoin ATM company a virtual currency license, making Coinsource the first platform to be DFS approved to operate Bitcoin Teller Machines (BTMs). However, the DFS has approved other licenses for 12 crypto companies as well.
DFS Superintendent Maria T. Vullo explained the importance of this approval for the financial industry as a whole:
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. 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.
Sheffield Clark, who is the CEO of Coinsource, added:
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. 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. New York represents not just a center of global innovation but also one of our largest target markets. We are extremely proud to be the only BTM operator holding a New York virtual currency license.
Ongoing Monitoring
Obtaining this license was subject to an intense approval process and just because Coinsource has secured approval, it doesn’t mean that its the end of its regulatory road. The company will still be monitored by the DFS and failure to adhere to any predetermined conditions will result in their license being revoked.
Coinsource will also need to somehow develop and implement initiatives to help prevent its customers from engaging in money laundering, terror financing, and other illicit activities.
The company has 40 Bitcoin kiosks all over the U.S. state of New York which allows customers to both buy and sell bitcoins.
Do you think that more crypto ATM providers need to be licensed? Will this increase adoption? Let us know in the comments below!
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