Maria T. Vullo, the superintendent of financial services at New York State department of financial services (DFS), has announced that Bitcoin ATM service provider, Coinsource, Inc., has been granted a virtual currency license.
The announcement’s press release noted that Coinsource is the first Bitcoin Teller Machine (BTM) operator to be issued a virtual currency license by the DFS.
Encouraging “Responsible Growth” Of “Financial Innovation”
Commenting on DFS’s role in developing regulatory standards to enhance consumer protection, Vullo said:
Today’s approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation. New York’s financial services marketplace is thriving with companies committed to complying with DFS’s regulations that ensure the security of transactions, safeguard the industry and protect consumers.
As a department of the New York state government, the DFS regulates financial services and products that are subject to banking and insurance laws.
The DFS is also responsible for regulating and licensing “technology-based money transmitters” under New York’s financial service laws. There are currently “twelve charters or licenses” that the DFS has granted to crypto or blockchain-related firms.
Coinsource, which “owns and operates touchscreen kiosks” for buying and selling bitcoin (BTC) with fiat money, has installed 40 BTMs. They are located in New York’s Nassau County, Westchester, and New York City.
Easy-To-Use Service
Coinsource’s BTMs allow users to deposit cash in exchange for bitcoin – which is transferred to their cryptocurrency wallets. Customers can also receive cash for their bitcoins by scanning the QR code on their smartphone’s mobile wallet at Coinsource’s kiosks.
Sheffield Clark, the CEO and co-founder at Coinsource, said:
Coinsource is the first and only company that operates BTMs 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.
According to the DFS, which aims to “ensure the continued solvency, safety, soundness and prudent conduct of the providers of financial products and services”, Coinsource was granted a virtual currency license after a “comprehensive and rigorous review” of its application.
