Bitcoin ATM Provider Coinsource Awarded Bitlicense
Coinsource, the world's leading Bitcoin ATM provider, has acquired a BitLicense to operate in the state of New York.
Coinsource, the world’s leading Bitcoin ATM provider, has acquired a BitLicense to operate in the state of New York, becoming the first cryptocurrency ATM provider and just the 12th company to receive the license from the New York Department of Financial Services (NYDFS).
The Texas-based cryptocurrency ATM operator applied for the state’s approval in 2015 but has since been operating under a provisional license with 200 bitcoin ATMs spread across the U.S. It also operates about 40 kiosks in the state of New York.
Most of the company’s devices are two-way ATMs, which means that users can buy and sell BTC when they access the machines. The ATMs support transactions ranging from a minimum of $5 to a maximum of $5,000 per day.
BitLicense is a big step for Coinsource
The BitLicense was started in 2015 by the state of New York, requiring crypto related businesses and companies to get the state’s approval first before setting up operations. Companies like Coinbase, Circle, and bitFlyer are among the few to have received permits and operate as legal entities.
A Coinsource spokesperson said that securing the license is a significant step for the company, with regulations serving to offer the business “legitimacy.”
Commenting about the BitLicense’s approval, she said:
“Coinsource has been operating with a provisional license within that state, so the approval of the license does not necessarily change the service, but further legitimizes the company as a whole.”
She also added that receiving the official license from New York, the financial hub of the United States, represents a huge opportunity to expand its user base and help bitcoin move towards mass adoption.
According to her, it also points to the need for crypto-related businesses to embrace regulatory compliance. She noted:
“This milestone demonstrates to both other crypto companies and the general public that if you remain compliant and play by the rules, you will be rewarded.”
Coinsource CEO Sheffield Clark held similar sentiments, noting in a statement that getting the state’s approval gives them the opportunity to fulfill their goal of providing millions of U.S users a dependable and convenient way of buying and selling digital currencies.
He said that Bitcoin’s growth means that it no longer stands out as a “fringe” currency; rather, it has steadily gained momentum as it moves towards mainstream adoption. The license gives it the chance to provide its New York users better services.
“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.”
The BitLicense debate
The BitLicense has been debated over the years since its inception and adoption, with proponents deeming it necessary as it helps enhance consumer protection.
On the other hand, opponents see it a source of frustration for crypto businesses- especially when it appears to discourage companies from setting shop in the state.
The New York Department of Financial Services has only granted the license to a handful of companies, leaving a significant number of crypto exchanges and service providers smarting or choosing to move their businesses out of the state of New York.
For instance, when New York introduced the licenses, two of the leading exchanges at the time in Kraken and ShapeShift decided to move their operations from the state explaining that the process was simply too arduous and costly.