The State Department of Financial Services ruled on Thursday that it has given its approval for a virtual currency license to Coinsource Inc.
New York residents will be able to acquire bitcoin or sell it in exchange for fiat currency at kiosks very similar to ATMs around the city of New York. The kiosks are known as BTMs, or Bitcoin Teller Machines.
Coinsource Inc, a bitcoin teller machine operator based out of Fort Worth, Texas, has implemented around 40 Bitcoin Teller Machines in and around New York City, as well as Westchester and Nassau Counties.
Customers can use cash to buy bitcoin and store it in a mobile wallet, or they can sell bitcoin already in their possession for cash by simply scanning their mobile wallet at the BTM.
Maria T Vullo, Financial Services Superintendent, commented on Thursday that
“today’s approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation.”
Up to this point, the State Department of Financial Services has rubber-stamped 12 licenses or charters for a number of companies involved in the virtual currency marketplace.
The State Department of Financial Services has gone to great lengths to clarify that this decision was reached after a “comprehensive and scrupulous review” of the application submitted by Coinsource Inc and that the firm is now subject to extensive regulatory conditions.
These conditions include the requirement to implement comprehensive anti-money laundering (AML) and counter-terrorism financing (CFT) protocols, along with “risk-based controls” that will prevent, and respond to any and all “potential or actual wrongful use of bitcoin.”
This wrongful use includes illegal activities and market manipulation.
CEO of Coinsource Inc Sheffield Clark believes that this new license marks an opportunity for
“all New Yorkers, from the unbanked to those who own the banks, to use our kiosks in neighborhood retail locations to buy bitcoin instantly in a convenient and familiar way.”
“New York represents not just a center of global innovation but also one of our largest target markets.”
The New York State Department of Financial Services has been proactive in ushering in technology-based financial innovations by way of its regulatory overview and has also been a prominent player in the launch of a suite of stable coins during quarter three of this year.
This includes the US dollar-backed Paxos stablecoin, as well as the Gemini dollar, which is a product of the Winklevoss twins.
Both stable coins launched on September 10.