Bitcoin ATM Maestro Coinsource Gains 'BitLicense' from NYDFS

Bitcoin ATM Maestro Coinsource Gains ‘BitLicense’ from NYDFS

The New York State Department of Financial Services (NYDFS) has granted its twelfth BitLicense to bitcoin ATM operators Coinsource. Now, the Texas company, which previously operated provisionally in New York, will be the first “BTM” enterprise to have formalized permission to work in the state. 

Also see: Russia Creates Arbitration Body for Cryptocurrency Disputes

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NY Now Has Greenlighted BTMs

On November 1st, NYDFS Superintendent Maria Vullo declared her department had granted Coinsource, Inc. a BitLicense, or the unique licensing required for cryptocurrency enterprises to operate above board in the state’s jurisdiction.

The NYDFS is the top financial regulator in New York. The strict regulatory requirements of the BitLicense, which were first instituted in 2015, have proven to be a source of consternation for many cryptocurrency companies eyeing the state and a boon for those select few who have made its cut so far.

Accordingly, the Fort Worth-based Coinsource is now the twelfth cryptocurrency firm to receive the demanding, though enabling, license.

Now, Coinsource has the full regulatory go-ahead to operate in New York state.

As such, Coinsource, which runs 200 kiosks in the U.S. and already provisionally operated 40 Bitcoin Teller Machines (BTMs) across New York’s largest metropolitan areas, will now have formal permission to continue offering and expanding its in-state services.

The BTM company had initially applied for the BitLicense back in 2015 right after the licensing was introduced. It’s now become the first BTM company to receive it.

“This is a landmark day for Coinsource, but an even more important win for New Yorkers,” noted Coinsource chief executive officer Sheffield Clark in the play’s announcement. “We only hope that this milestone brings further validation to the BTM industry. It proves that regulators will reward entrepreneurs who combine innovation with a willingness to meet best practices and compliance standards.”

As for what’s next for the company, their vision to the horizon is a focused one.

“While Coinsource continues to explore international deployment, the primary focus at present is to increase access and continue rollout across the 50 states,” Clark told Bitsonline.

NYDFS in the News Lately

Coinsource may now have full reign to operate in New York, but it won’t be free reign.

“Coinsource is subject to license revocation by DFS, among other regulatory and/or enforcement actions, for failing to comply with any of the provisions of DFS’s approval,” the NYDFS said plainly in their associated press release.

All in a day’s work for the regulators, of course, who have found themselves amid a flurry of cryptocurrency-related headlines in the past year.

Last November, former NYDFS Superintendent Ben Lawsky, who was pivotal in the creation of the BitLicense, landed a spot on the board of directors of Ripple, creators of XRP, to much ado.

Then, in May 2018, businessman Theo Chino filed an appeal to the Supreme Court of New York County to overturn a ruling blocking him from proceeding with his legal challenge against the BitLicense.

As the summer reared its head, the NYDFS granted approval for the listing of Zcash on Gemini and Stellar on itBit, two cryptocurrency exchanges headquartered in New York. This fall, the regulators also gave permission to Gemini to list its Gemini Dollar stablecoin and approved Coinbase’s status as a Qualified Custodian in the state.

Seeing as how it took three years for Coinsource’s application to be greenlighted, the NYDFS presumably has no shortage of more cryptocurrency-linked work to steadily slog through in the coming months.

What’s your take? Have you ever used a bitcoin ATM before? What was the experience like? Let us know in the comments section below. 

Images via Coinsource

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