Coinsourse, a bitcoin and cryptocurrency ATM operator, has obtained license from the New York State Department of Financial Services (NYDFS) to operate. The company had been waiting for this since they started operations in the area with a limited license. Coinsource is the first ATM operator to receive a BitLicense from the State of New York.
The New York State Department of Financial Services approved a license for crypto ATM provider Coinsource. The company has long remained compliant with federal money laws, from know-your-customer to anti-money laundering. Indeed, some analysts believe the company’s mandating customer identification is probably what helped ease regulators’ concerns.
Maria T. Vullo, Superintendent of the NYDFS declared, “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,” confirming the importance that compliance and regulations have in the legal cryptocurrency business environment.
The CEO of Coinsource, Sheffield Clark commented excitedly, “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.” He was also sure to remind potential customers and investors, “We are extremely proud to be the only BTM operator holding a New York virtual currency license.”
One of the Largest Crypto ATM Companies
Coinsource is one of the largest Bitcoin ATM companies in the world. In the United States, they have more than 200 Bitcoin ATMs. Founded in Texas in 2015, the company has been able to help popularize Bitcoin ATMs.
Bitcoin ATMs Coinsource manages are capable of buying or selling bitcoin with cash only. Currently, they have operations in California, Oklahoma, Nevada, Texas, Louisiana, Missouri, New Jersey, Pennsylvania, Tennessee, Arizona, Georgia, Rhode Island, New Hampshire, Massachusetts, Colorado, Maryland, and New York.
They had been operating with a temporary license from the NYDFS, waiting for approval from them with 40 ATMs already installed in several local areas.
New York and BitLicense
The state of New York is the only state that has implemented this kind of specific license for cryptocurrency-related businesses to operate. The New York State Department of Financial Services has special auditors that study business compliance.
Coinsource is just one of a dozen companies to earn approval, along with companies like Gemini, the exchange managed and owned by the Winklevoss Twins, Paxos, the company that recently issued a new stablecoin called Pax, and payment processors like BitPay.
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