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New York Grants First BitLicense to Bitcoin ATM Company

Bitcoin ATM operator, Coinsource, recently received approval for a digital currency license from the New York Regulator.

Bitcoin ATM Firm Receives Virtual Currency License in New York

Coinsourse achieved a milestone today, as it became the first Bitcoin ATM operator to receive a digital currency license from the Department of Financial Services (DFS). According to a press release by the Department of Financial Services, on Thursday (November 1, 2018), Maria T. Vullo, Financial Services Superintendent, stated that the New York State DFS approved Coinsource’s application for a digital currency license.

This approval comes after a thorough review of the company’s application. It is also subject to regulatory conditions which aim at protecting New York investors and follows strict conditions.

Coinsource is a US-based Bitcoin ATM company which uses touchscreen ATMs that enable customers to use fiat to purchase BTC or sell their BTC to get cash. Customers willing to do the former can store their bitcoins on mobile wallet, while the latter can be done by scanning the mobile wallet at an ATM kiosk. The company currently has forty BTC ATM kiosks in New York.

Commenting on the approval, 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. 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.

Furthermore, Sheffield Clark, CEO of Coinsource, stated that the company is the first and only Bitcoin ATM company to get a digital currency license from the DFS. Clark further stated that the approval would boost customers’ confidence to transact using the kiosks.

However, the DFS could revoke the Bitcoin ATM company’s new license, if it refuses to comply with laid down conditions.

According to coinatmradar, there are currently 129 Bitcoin ATMs/Tellers in New York.

New York BitLicense

The New York cryptocurrency market is highly regulated, with virtual currency exchanges adhering to strict regulations. The state, however, supports the growth of cryptocurrency, ensuring that the industry is part of its massive financial landscape.

Payment company, Square, obtained a BitLicense approval from the New York DFS to offer digital currency services in New York. Also,  the Winklevoss Twins got approval from the DFS to offer Zcash trading. The approval makes the Gemini, the first licensed Zcash exchange in the world.

Coinbase equally got approval from the New York regulator to allow its subsidiary, Coinbase Custody Trust Company LLC, operate a limited trust company. This would enable the subsidiary to offer custody services to six virtual currencies, including XRP, Litecoin, and Bitcoin.

Image courtesy of Shutterstock.

About author

For quite by chance, I discovered Bitcoin in 2010 and I have been an ardent enthusiast ever since. I enjoy cryptography, mathematics, and theoretical physics. If I am not writing about cryptocurrency, I am attempting to beat my scrabble high score.
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