Bitcoin teller machine (BTM) operator Coinsource received approval of an application for a virtual currency license from one of New York’s financial watchdogs.
The company becomes the first BTM operator and 12th cryptocurrency company to receive a license from the New York State Department of Financial Services (NYDFS). The company had been operating via a provisional license.
Coinsource must meet several requirements, including maintaining risk-based controls “to prevent and respond to any potential or actual wrongful use of bitcoin,” said the regulator. Coinsource must also comply with DFS regulations for monitoring transactions and cybersecurity and have policies in place for protecting consumers and addressing their concerns.
“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,” Coinsource CEO Sheffield Clark said in a press release.
Coinsource owns and operates BTMs, similar to the more familiar ATM, except they allow consumers to buy or sell bitcoin (BTC) for cash. Users who insert cash into the kiosks can store their bitcoin on their mobile wallets, or they can sell bitcoin for cash by scanning their mobile wallet.
The company has 40 kiosks in New York at gas stations and retail stores, and about 200 spread throughout several states and the District of Columbia. “New York represents not just a center of global innovation but also one of our largest target markets,” Clark said. “We are extremely proud to be the only BTM operator holding a New York virtual currency license.”