The operator of the largest network of Bitcoin ATMs, Coinsource, has become the latest company to acquire a bitlicense in the US. The news makes the company only the twelfth holder of the lucrative permit.
The New York Department of Financial Services granted Coinsource the permit after the firm placed over 40 machines in the state. The company is the first Bitcoin ATM operator which becomes a holder of the bitlicense.
Coinsource begined the application process over three years ago in the summer of 2015. Until now the company was operating in New York with a provisional license.
Commenting on the achievement of the company, the CEO of Coinsource Sheffield Clark said, the customers of the firm can buy and sell with confidence that Coinsource meets and exceeds the high standards set by the New York DFS.
“New York represents not just a center of global innovation but also one of our largest target markets. We are extremely proud to be the only bitcoin ATM operator holding a New York virtual currency license,” Clark said.
After getting founded in 2015, Coinsource deployed over 200 ATMs across 19 states. The clients of the firm can insert their cash into the machines and buy bitcoin. Selling bitcoin for cash is also an option available to customers.
Quick Alternative to Exchanges
Crypto ATMs have been positioned as a quick and easy alternative to online exchanges. Customers are paying a high fee for the transaction but are getting their cryptocurrency instantly. Issues with limited customer service support for some clients of online exchanges have also played a positive role for companies offering bitcoin via ATMs.
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“From the onset, our goal was to provide millions of Americans with a reliable and convenient way to buy digital currency. Bitcoin is no longer a fringe currency, and in 2018, is increasingly being adopted by the mainstream. Today, with the issuance of the virtual currency trading license to a BTM operator, the Bitcoin industry takes another step toward public adoption,” continued Clark.
The bitlicense acquisition by Coinsource is important from an industry recognition standpoint. US regulators have been methodical in adopting a new regulatory framework for this new asset class.
“We want to thank the New York DFS for their bold confidence in the future of cryptocurrency adoption. Its ability to stand at the forefront of this industry is without question,” elaborated on the matter the CEO of Coinsource.
The Bitcoin ATM operator joins the ranks of BitFlyer, BitPay, Coinbase, Circle, Genesis Global Trading, XRP II, Square, and Xapo. Gemini Trust Company, Paxos (formerly itBit), and Coinbase Custody Trust Company LLC are also holding charters.
Crypto Industry Changing
The official licensing of cryptocurrency-related companies is a positive development for the industry as a whole. Some crypto-pioneers have already been proactive with regulation stating that self-policing by companies in the industry is essential.
The creation of the Global Digital Finance (GDF) industry body has become an important piece of news for cryptocurrency aficionados. On Tuesday the new industry body announced its Founding Members and released an industry Code of Conduct to drive sustainable crypto assets innovation.
The GDF was founded by global leaders in the crypto assets sector Circle, Coinbase, ConsenSys, DLA Piper, Diginex, Hogan Lovells and R3. The not-for-profit initiative is based in London, New York, and Hong Kong.