unlike in Germany Bitcoin ATMs in the USA are not uncommon. The creation of the regulatory framework for the operation of such Bitcoin ATM is the task of the Federal States. In New York the Bitcoin-ATM-company Coinsource now as the first of its kind, a license for the operation of crypto-ATM.
in The U.S. state of New York places high demands on crypto and Blockchain-companies that want to operate on its territory. These requirements are embodied, in particular, the “BitLicence”, awarded by the New York regulatory authority, the DFS (New York State Department of Financial Services). As it says on the Homepage of DFS:
“No Person may exercise without an inspector license […] a business activity in the field of virtual currencies.”
The acquisition of this license is, however, connected with bureaucratic hurdles and costs of at least US $ 100,000. Therefore, some crypto-companies, such as IDEX, your New laid York business is already on ice.
With Coinsource has now received the first Bitcoin ATM company has a license from the DFS. This is the DFS on 1. In November, in a press release known. The licensing a further step in the context of a by is thought to regulate innovations in the financial sector, says Maria T. Vullo, chief inspectors from the urine in regulating authority:
“The New York financial services market is thriving with companies that agree to comply with the regulations of the DFS, which will ensure the security of transactions, the protection of industry and protection of consumers,”
so Vulla.
40 Bitcoin ATM is already in operation
According to euphoric also the CEO of Coinsource, Sheffield Clark, commented in the press release:
“Coinsource is the first and only company that operates BTM [Bitcoin Teller Machines], receives a virtual New York currency license. All New Yorkers – the people who have no Bank, up to the people to whom the banks belong to – you can use our machines in their adjacent retail stores to buy Bitcoin instantly in a convenient and familiar way. Now that Coinsource is a licensee, our customers can buy with confidence and sell that Coinsource meets the high Standards of the New York Department of Financial Services, and surpasses.“
The license award is subject to change. Coinsource should be aware of the regulatory requirements, in particular, the Directive against market manipulation and other illegal activities, may recover the DFS of the license at any time.
Coinsource operates alone in the state of New York, 40 Bitcoin ATM, only Bitcoin for Cash (and Vice versa) can be traded – now with the blessing of Regulators.