Shutterstock, Rafal PytelBitcoin ATM Virtual Currency License Approved by NY Dept. of Financial Services
Coinsource, a company that operates Bitcoin ATMs, has been granted a virtual currency license by the New York State Department of Financial Services, DFS announced on Thursday, making it the first Bitcoin ATM operator to obtain one of the licenses from the state regulator.
November 01, 2018 at 04:34 PM
2 minute read
Coinsource, a company that operates Bitcoin ATMs, has been granted a virtual currency license by the New York State Department of Financial Services, DFS announced on Thursday.
It is the first Bitcoin ATM operator to obtain one of the licenses from the state regulator, according to the regulator and the company.
“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,” DFS Superintendent Maria Vullo said in a statement.
A bitcoin ATM machine made by Coinsource.
Coinsource started the application process for a virtual currency license in 2015 shortly after the company was founded. Its allows for people to pay for bitcoin using cash or to exchange their bitcoin for cash using by scanning their mobile wallet. The company operates 40 kiosks in New York and over 200 machines in 18 other states and Washington, D.C.
“This is a landmark day for Coinsource, but an even more important win for New Yorkers. We only hope that this milestone brings further validation to the BTM industry,” Coinsource CEO Sheffield Clark said in a news release. “It proves that regulators will reward entrepreneurs who combine innovation with a willingness to meet best practices and compliance standards,” he said.
A representative from Coinsource was not immediately available for comment.
Companies must take several steps to be granted approval of a license. Those steps include maintaining policies and procedures that protect consumers and address and quickly resolve consumer complaints, comply with the DFS's cybersecurity regulations, and implement controls to prevent money laundering or terrorist financing. Companies must also submit to background checks of all employees and be completely transparent with their earnings, according to the department.
Other companies with a virtual currency license from the DFS are Bitflyer, BitPay, Coinbase, Circle, Genesis Global Trading, XRP II, Square and Xapo.
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