Digital Asset ATM Provider Coinsource Acquires Bitlicense

Coinsource announced on Thursday that it has become the first digital asset ATM provider to be granted a Bitlicense in the state of New York. The company joins 12 other organizations that have already received the license for virtual currency businesses from the New York Department of Financial Services (NYDFS).

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Controversial Permit

Coinsource, a Texas-based cryptocurrency ATM operator, has made a lot of headway over the years, with 200 BTC-dispensing ATMs across the U.S. and 40 kiosks in the state of New York. The company applied for the Bitlicense in the summer of 2015, but it and other businesses have been able to operate over the years by using provisional licenses.

The Bitlicense was created in 2015 and has been controversial since the day it was introduced. However, because New York is one of the world’s biggest financial centers, large cryptocurrency companies such as Circle, Coinbase and Bitflyer have already secured approval to offer their services in the state. Coinsource will be the 12th company to be granted the Bitlicense and the first crypto-ATM provider to be permitted to operate legally in the state.

“Coinsource is the first and only company that operates Bitcoin Teller Machines (BTM) to receive a New York virtual currency license,” Coinsource CEO Sheffield Clark said. “All New Yorkers — from the people that are unbanked to the people who own the banks — can use our kiosks in their neighborhood retail locations to buy bitcoin instantly in a convenient and familiar way.”

Digital Currency ATMs Offer Greater Accessibility  

A large number of customers use BTC-dispensing ATMs as an alternative to online exchanges, which often have issues such as long transaction delays and poor customer service support, Clark said, adding that Coinsource also expands access to digital assets. “This is a landmark day for Coinsource, but an even more important win for New Yorkers,” he stated.

Digital currency-based ATMs have become extremely popular over the past year, with thousands now installed throughout the world, according to Coinatmradar.com, an analytical cryptocurrency data website. Beyond the Coinsource machines throughout New York, several other companies operate cryptocurrency ATMs across the state, such as Pay-O-Matic and Coinbtm.com.

What do you think about Coinsource getting the Bitlicense to operate in New York? Let us know what you think in the comments section below.

Images via Shutterstock, and Coinsource.

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