A virtual currency operating license has been given to Bitcoin ATM operator, Coinsource Inc. by the New York State Department of Financial Services (NYDFS) according to a Nov 1 press release.
The license, also called 'Bitlicense’ will allow New York residents to use cash to buy and sell bitcoins on Bitcoin Teller Machines (BTMs) provided by Coinsource.
Remarkably, this is the first time that a Bitcoin ATM operator is receiving a regulatory seal of approval in the U.S.
Coinsource already has 40 Bitcoin ATM Machines located in different U.S regions including Westchester, Nassau County and New York where it just got licensed. Encouraged by the new license, one would readily expect that Coinsource will move to increase the number of BTMs in the streets of New York.
Coinsource CEO Sheffield Clark expressed profound delight about the new milestone and looked forward to the opportunity that it opens up.
He said that the license represents an opportunity for “all New Yorkers – from [the] unbanked to [those] who own the banks – [to] use our kiosks in [...] neighborhood retail locations to buy bitcoin instantly in a convenient and familiar way.”
Coinsource Solution Meets Regulatory Requirements
As explained in the release, the NYDFS have carefully reviewed the application used by the the crypto startup for it's transaction and found no defects.
However, to retain the license which it has just received, Coinsource will have to comply with other regulatory demands that are common to financial firms.
This includes Anti-Money Laundering (AML) laws and cybersecurity measures that will combat illegal use of Bitcoin via the machines. In addition, policies and procedures to address consumer protection by promptly addressing complaints will be have to be put in place.
The release also points out that maintaining these “risk-based controls” will allow the Bitcoin operator to continue carrying out its business in the region.
Conclusively, the New York State Department of Financial Services (NYDFS) pledged to continue supporting “responsible growth of financial innovation” as long it meets up with regulations guiding the space.