Coinsource becomes first bitcoin ATM operator to receive BitLicense

The New York State Department of Financial Services (NYDFS) has announced that it has granted virtual currency license – BitLicense – to leading bitcoin ATM network Coinsource.

Coinsource currently operates 40 Bitcoin kiosks in New York, located in New York City, Westchester and Nassau County. It allows customers to insert cash and buy bitcoin (and store it on their mobile wallet) or sell bitcoin for cash (by scanning their mobile wallet at the kiosk).

With this, Coinsource has become the twelfth company and the first bitcoin ATM operator which has been granted the license. In its official blog post, the company said that the license was granted following a three-year application, review and approval process.

“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,” Coinsource general counsel, Arnold Spencer, said.

With ATMs deployed in over 18 states, Coinsource nationally services 164 million residents in both Bitcoin purchases and sales. In August, the company surpassed the 200 machine milestone with the addition of 17 new machines in Florida.

Currently, Coinsource kiosk only allows purchasing and selling of bitcoin. The company expects that it will be licensed in all 50 states in 2019 to do more types of money transmission.

Coinsource 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,” Spencer said.

The company also has plans to expand its operations globally. It seeks to enter Japan, South Africa and Puerto Rico, and has already received its money transmission license in Puerto Rico.

“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,” CEO of Coinsource Sheffield Clark said. “We are extremely proud to be the only BTM operator holding a New York virtual currency license.”