Bitcoin teller machine (BTM) operator Coinsource has only become the 12th crypto organization to get a license from the New York STATE DEPT. of Financial Services (NYDFS).

The firm announced approval of the so-called BitLicense in November 2018, with the firm’s general counsel Arnold Spencer noting that it had been the first granted to a bitcoin ATM provider to date. The business already possesses 40 Bitcoin ATMs.

In a statement, NYDFS superintendent Maria Vullo confirmed the news, expressing the license approval is “a further part of implementing strong regulatory safeguards and effective risk-based controls while encouraging the accountable growth of financial innovation.”

Receiving the BitLicense, Spencer told CoinDesk, “is normally a validation of the business design [and] our compliance model.”

“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.”

BitLicense General Counsel Arnold Spencer

Bitcoin teller equipment (BTM) operator Coinsource has only become the 12th crypto enterprise to get a license from the brand new York State Department of the ranged from having a business disaster continuity intend to state-of-the-art cybersecurity procedures, Spencer indicated. During the analysis period, Coinsource grew from as an unaudited organization with three employees and a small number of BTMs to being completely audited and growing to a lot more than 20 employees and over 200 machines.

“We’ve had 500 percent expansion over three consecutive years regarding equipment, and we’ve had comparable growth in revenue until planting season of 2018, when it slowed up substantially,” he said.

Compared with traditional exchanges, the firm’s BTMs will be convenient and offer direct peer-to-peer transactions, Spencer said, adding: “We do our bank account beginning and compliance in real-time.”

The machines’ speed originates from a proprietary system that Coinsource designed to conduct know-your-customer checks. In which a customer would have to send a crypto exchange bank details and other proof identification, Coinsource only needs a driver’s license, a selfie and a cellphone quantity.

Coinsource also helps it be easier for unbanked persons to gain access to cryptocurrencies, Spencer said, as they do not need to have a bank account to acquire bitcoin and may pay with cash.

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