Coinsource, a Fort Worth-based bitcoin ATM network operator today was granted a virtual currency license in the state of New York. With approximately 40 physical kiosks in the state, the operator becomes the first bitcoin ATM company to be granted the NYDFS ‘BitLicense’, and only the twelfth company overall. Coinsource, which began the application process for a virtual currency license in the summer of 2015, had been operating in the state under a provisional license.
Founded in 2015, Coinsource deploys ATMs to key population centers across America, with over 200 machines in 19 states, including the District of Columbia. Coinsource offers a world-class compliance and consumer protection program, as well as 24/7 support. The company allows customers to insert cash and buy bitcoin with cash (and store it on their mobile wallet) and sell bitcoin for cash (by scanning their mobile wallet at the kiosk). The majority of customers opt to use bitcoin ATMs as an alternative to online exchanges, which have been criticized for requiring highly technical know-how, long transaction delays, high fees, limited customer service support, in addition to being vulnerable to manipulative trading activity and fund hacks.
“Coinsource is the first and only company that operates Bitcoin Teller Machines (BTM) 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. 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 bitcoin ATM operator holding a New York virtual currency license.”
New York State made the decision to regulate cryptocurrency businesses in 2015 when they introduced virtual currency regulation, provided those companies met a strict set of requirements, including full background checks on all employees, strict record keeping, and full earnings transparency. In being granted a virtual currency license by the NYDFS, Coinsource joins some of the most influential companies in the cryptocurrency industry, including BitFlyer, BitPay, Coinbase, Circle, Genesis Global Trading, XRP II, Square, and Xapo, with charters issued to Gemini Trust Company, Paxos (formerly itBit), and Coinbase Custody Trust Company LLC.