NYDFS issues first-ever crypto ATM BitLicense
Only 12 companies in the cryptocurrency industry have been awarded a BitLicense by the New York Department of Financial Services (NYDFS). The license is seen as a form of approval that legitimizes the company's activity and is not easy to receive. Of those 12, Coinsource has now become the first ATM company to receive the license.
Coinsource general counsel Arnold Spencer said that the approval was a "validation of our business model [and] our compliance model." He added, "It's been a long, involved process. The initial application was [in 2015, and] since then what we've seen is a great deal of diligence on NYDFS' part, really pushing us to both explain and in some cases improve our policies and procedures."
The superintendent of the NYDFS, Maria Vullo, confirmed the BitLicense, stating that it was a "further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation."
Coinsource operates 40 crypto ATMs in New York and over 200 nationwide. The New York-based machines were being provided under a provisional license, pending final approval by the NYDFS and incorporate proprietary software that allows for real-time validation of Know Your Customer guidelines.
Currently, Coinsource's ATMs only allow for Bitcoin BTC purchases and sales. They don't allow for crypto to be exchanged between users. However, this could change in the near future. Coinsource currently has money transmission licenses in 18 states and 15 more are pending approval. By next year, it could have licenses in all states, which would allow it to offer crypto exchanges between users.