Today Coinsource, the world’s largest Bitcoin ATM operator, became the first in its field to receive the highly-sought-after approval of the New York Department of Financial Services and was granted a Virtual Currency License. Following a three-year application, review and approval process, Coinsource joins only 11 other companies in the cryptocurrency space to receive this license, and is the only Bitcoin ATM operator to have done so.
Coinsource general counsel, Arnold Spencer, today explained, “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 NYDFS established regulations in 2015 for companies applying for a license to conduct financial transactions using virtual currencies. The NYDFS is known for imposing heavy regulatory requirements on cryptocurrency businesses as their application process is extremely thorough, very demanding, and to date, in the three years since they instituted the program, they have only granted 11 other licenses. While it is anticipated that this application process should be speeding up, there is currently a huge backlog of companies seeking the NYDFS license.
Coinsource bitcoin ATMs are convenient and quick. The machines’ speed comes from a proprietary system that Coinsource developed to conduct know-your-customer checks. Where a customer would have to send bank details and other proof of identification to a crypto exchange, Coinsource only needs a driver’s license, a selfie and a cellphone number.
The company has grown to over 200 machines and more than 20 employees during the three years they were being reviewed. Coinsource has experienced tremendous growth and is involved in expansion while also planning to add more functionality to their machines. Currently only bitcoin can be bought and sold using a Coinsource kiosk, but the company projects that in 2019 they will be licensed in all 50 states to do more types of money transmission. Spencer says by then they will, “be in a position to have people deposit cash into machines and transfer bitcoin into a third-party wallet, provided both customers were registered.”