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Coinsource, Inc. Granted Virtual Currency License by New York Regulators

Reading Time: 2 minutes by on November 3, 2018 Bitcoin, Business, Finance, News, Regulation
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Coinsource, Inc., a leading bitcoin teller machine (BTM) operator, has become the first of such firms in the world to be granted the infamous New York BitLicense, according to a press release by the New York State Department of Financial Services (DFS) on November 1, 2018.

Coinsource Gets DFS Greenlight

Coinsource, a BTM operator that handles 40 bitcoin kiosks in New York, has been approved by the DFS to operate in the state as a registered business.

As stated in the DFS press release, the operations of the firm have been comprehensively and rigorously screened, to ensure it’s in line with the relevant financial regulations including anti-money laundering (AML) and know-your-customer (KYC) requirements, compliance with the DFS transaction monitoring and cybersecurity regulations and more.

“Today’s approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the growth of financial innovation,” DFS Superintendent, Maria. T. Vullo.

With the latest development, Coinsecure has now become the first BTM operator and the twelfth firm to date, to secure the somewhat elusive license. Per the Coinsource team, its application has been under review by the New York regulators since three years ago and finally getting the much sought-after license represents a massive feat for the firm. Commenting on the development, Coinsource general counsel, Arnold Spencer revealed that:

“It’s been a long, involved process. The initial application was filed in 2015 and since then what we’ve seen is a great deal of diligence on NYDFS part, really pushing us to both explain and even improve our policies and procedures.”

Fostering Bitcoin Adoption

Founded in 2015 when the price of the pioneer cryptocurrency had yet to hit the moon, Coinsource is arguably the world’s largest bitcoin teller machine operator, with more than 200 BTMs spread across various locations in the United States and over 20 staff in its employ.

Coinsource is hoping to spread adoption by making it easy for cryptocurrency investors to buy or sell bitcoin for fiat money via its touchscreen kiosks.

To use the Coinsecure BTM, a first time user is required to go through a simple KYC process which requires them sending the relevant bank details and other documents like a copy of their driver’s license, a selfie, and their mobile phone number to a specific cryptocurrency exchange.

While the American BTM ecosystem is booming, the same can’t be said of some other jurisdictions. As reported by BTCManager on October 25, 2018, Uncocoin co-founder Harish BV was arrested by India’s cybercrime police for erecting a bitcoin teller machine in the state.

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