November 2, 2018 12:12 AM
The bitcoin ATM operator believes that the license will legitimize its business and help spur the adoption of cryptocurrency.
The New York State Department of Financial Services (DFS) issued the latest BitLicense to bitcoin ATM operator Coinsource, according to a November 1 announcement[1] published on the regulator's website.
The DFS developed[2] the BitLicense regulatory framework in 2015. The framework outlines a strict set of requirements companies dealing in cryptocurrency must meet before the regulator will allow them to conduct business in the state.
Coinsource has been operating bitcoin ATMs in New York under a provisional license since 2015, and according to the press release, the company currently manages 40 different bitcoin ATMs throughout New York, Westchester, and Nassau counties. Customers can use these bitcoin ATMs to purchase bitcoin with cash and store it in their wallets or sell the bitcoin they have already stored for fiat.
Explaining the benefits of using a bitcoin ATM over a more traditional exchange platform, Coinsource CEO Sheffield Clark told ETHNews:
"Besides having some of the lowest fees in the bitcoin ATM space, [bitcoin] ATMs provide an unparalleled level of convenience by allowing users to skip the lengthy process of withdrawing cash, depositing it into a bank, linking a bank account to an exchange, making exchange deposits, etc."
The approval process for a New York BitLicense is time-consuming. The process[3] "involves an extensive review of the applicant's policies, including its anti-fraud, consumer protection, and cybersecurity practices." These regulations have been criticized for being too expensive and unnecessarily invasive, and have even caused companies such as Kraken and ShapeShift to leave the state.
According to Clark, Coinsource was willing to jump through all the required hoops
