Bitcoin (BTC-USD) ATM operator Coinsource has received approval to install and operate bitcoin machines in New York.
The company has been granted a virtual currency license by the New York Department of Financial Services (DFS) to operate bitcoin teller machines (BTM) in the state.
First Company To Operate BTMs In New York
With this approval, Coinsource becomes the first and only company to operate bitcoin machines in New York.
BTMs are touchscreen kiosks which allow customers to buy bitcoin with, or sell bitcoin for, fiat currency in the form of cash. They allow customers to insert cash and buy bitcoin and store it on their mobile wallet or sell bitcoin for cash by scanning their mobile wallet at the kiosk.
“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,” Coinsource CEO Sheffield Clark said in a statement.
“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,” Clark added.
Currently, Coinsource operates 40 bitcoin machines in New York located in New York City, Westchester and Nassau County.
Approval Follows Rigorous Review of Coinsource’s Practice: DFS
DFS said that the approval follows a comprehensive and rigorous review of Coinsource’s application and is subject to significant regulatory conditions. These include implementing effective risk-based controls and appropriate BSA/AML and OFAC controls to prevent money laundering or terrorist financing as well as to prevent and respond to any potential or actual wrongful use of Bitcoin, and maintaining policies and procedures for consumer protection and to promptly address and resolve customer complaints.
The “approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation,” Financial Services Superintendent Maria T. Vullo said in a statement. “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.”